The yen fell on Tuesday after the decision of the Bank of Japan to maintain its current monetary policy unchanged.
The Bank of Japan retained the key short-term rate at the level of -0.1% and the zero target level of 10-year government bonds yield.
A statement by the central bank of Japan said that the bank "intends to maintain current extremely low levels of short-term and long-term interest rates for an extended period".
The Bank of Japan reiterated that it wants to achieve the target inflation rate of 2% as soon as possible, although acknowledged that inflation will not reach the target level, at least until the end of 2021.
By the beginning of the US trading session, the USD / JPY rose 0.45% to 111.60.
The USD / JPY is rising in the upward channel on the daily chart, continuing to trade above the key support levels of 110.20 (the Fibonacci level 38.2% of the pair's correction since August last year and the level of 99.90), 110.00 (EMA200 and lower line of the ascending channel on the daily chart).
The further growth of USD / JPY with the nearest target at resistance level 113.10 (Fibonacci level 50% and maximums of the year) is probably. Long-term growth targets - the level of resistance 116.00 (Fibonacci level 61.8%), 118.60 (highs in January 2017).
The alternative scenario will be connected with breakdown of short-term support levels of 111.30 (EMA200 on the 1-hour chart), 111.00 (EMA200 on the 4-hour chart) and further decline to the support levels 110.20, 110.00.
Nevertheless, against the background of a different focus of monetary policies of the Fed and the Bank of Japan, the upward trend is predominant. Long positions are preferred.
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Support
levels: 111.30, 111.00, 110.20, 110.00
Resistance levels: 112.00, 112.25, 113.10, 113.70, 114.00, 114.40, 115.00, 116.00
Trading Scenarios
Buy Stop 111.65. Stop Loss 111.20. Take-Profit 112.00, 112.25, 113.10, 113.70, 114.00, 114.40, 115.00, 116.00
Sell Stop 111.20. Stop Loss 111.65. Take-Profit 111.00, 110.20, 110.00
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