USD/JPY Rebounds Sharply Above 110 on BOJ Headlines

USD/JPY Rebounds Sharply Above 110 on BOJ Headlines

22 April 2016, 07:12
Roberto Jacobs
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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).


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