BoJ remains on hold at -0.10%

BoJ remained on hold at -0.10% as was widely expected. The accompanying statement had a rather neutral to dovish tone as it downgraded its assessment of the CPI and left unchanged the pledge to buy JGB’s at a pace of around 80 trl per year. Also it should be noted, that the bank seems to maintain the JGB 10 year yield target around 0% and that its inflation expectations are moving sideways. The market did not have much of a reaction on the news as the USD/JPY remained rather stable and we could see the Yen bypassing the meeting in the next few days as a non-event.

USD/JPY rose yesterday breaking the 110.40 resistance level. The pair could continue to have some bullish tendencies today as financial releases could support the USD side. Should the pair find fresh buying orders along its path we could see it breaking 111.00 resistance line and aim for the 111.60 resistance hurdle. Should it come under selling interest we could see it breaking the 110.40 support line and aim for the 109.75 support level.