USD/JPY Sees Fresh Selling as Europe Gets Underway
A renewed bout of selling interest gripped the USD/JPY pair in early Europe, as markets now await BOJ Kuroda’s press conference for fresh insights on today’s policy decision.
USD/JPY revisits daily lows
The Japanese currency is seen consolidating near weekly highs against the greenback as markets continue to absorb BOJ’s downside surprise. USD/JPY lost almost 200 pips after BOJ announced no changes to its monetary policy earlier today, squashing market expectations of further easing measures in a bid to counter the recent appreciation in the yen versus the USD. At the moment, the major trades around 108.85 levels, down -2.25% on the day.
The major failed to sustain a minor bounce above 109 levels and reverted to daily lows amid fresh bout of selling as the European traders hit their desks and react negatively to the BOJ’s disappointing verdict. Looking ahead, all eyes remain on the BOJ Chief Kuroda’s presser for fresh USD/JPY moves.
USD/JPY Technical levels to watch
In terms of technicals, the immediate resistance is located at 110 (round number). A break above the last, the major could test 110.41/50 (daily S2/ psychological levels). While to the downside, the immediate support is seen at 108.78 (post-BOJ low) and below that at 107.81 (Apr 18 Low).