USD/JPY Rebounds Sharply Above 110 on BOJ Headlines
The USD/JPY
pair witnessed a sharp 80-pips rally above 110 barrier in a knee-jerk
reaction to the latest BOJ headlines on negative interest rates, as
reported by Bloomberg.
USD/JPY found support near 109.30 region
The
yen met fresh supply and slumped to fresh twelve-day lows against the
American dollar in late-Asia, after reports hit the wires that BOJ officials are said to discuss lending to banks at negative rate.
The USD/JPY pair popped higher from near daily low to hit fresh almost
two-week tops at 110.19 on the headlines release. At the time of
writing, USD/JPY quickly retreats to 109.90, still up 0.44% on the day.
The
Asian markets also found support from the BOJ news, sending the Nikkei
into the green territory, which further supports the upside rally in the
major.
Meanwhile, markets digest the BOJ headlines in wake of next week’s Fed and BOJ monetary policy decisions.
USD/JPY Technical levels to watch
In
terms of technicals, the immediate resistance is located at 110.50/64
(psychological levels/ Apr 6 high). A break above the last, the major
could test 111 (multi-week high). While to the downside, the immediate
support is seen at 109.09/00 (10-DMA/ round figure) and below that at
108.74/73 (Apr 20 & 19 Low).
