USDJPY confidently surpassed the level of 141.00, as the BoJ persisted with its expansionary policy.

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• USD/JPY has jumped above 141.00 confidently as the BoJ has continued its expansionary policy.

The pair currently trades last at 141.043.

The previous day high was 141.5 while the previous day low was 139.94. The daily 38.2% Fib levels comes at 140.91, expected to provide support. Similarly, the daily 61.8% fib level is at 140.54, expected to provide support.

The USD/JPY pair showed a V-shape recovery from 140.00 after the Bank of Japan (BoJ) Governor Kazuo Ueda announced an unchanged interest rate decision. BoJ Ueda decided to continue monetary stimulus to spur wages and the overall demand as current inflationary pressures in Japan are majorly contributed by higher import prices.

BoJ Ueda has commented that Japan’s headline CPI around 3.5% is due to external, cost-push factors, and cannot be controlled by Japan’s monetary policy.

Meanwhile, the US Dollar Index (DXY) is consistently trading in a narrow range above 102.00 amid an absence of potential triggers ahead.

Economists at ING analyzed the USD Index outlook stating that in the short term, the Dollar may well stay soft against most currencies except the Japanese Yen, with the Bank of Japan remaining resolutely dovish. Here, Yen-funded carry trades will remain popular.

USD/JPY is approaching 61.8% Fibonacci retracement (plotted from 21 October 2022 high at 151.94 to 16 January 2023 low at 127.22) at 142.63 on a daily scale. The asset has refreshed its six-month high at 141.50.

Upward-sloping 20-period Exponential Moving Average (EMA) at 139.38 is providing a cushion to the US Dollar bulls.

The Relative Strength Index (RSI) (14) has shifted into the bullish range of 60.00-80.00, which indicates that the bullish momentum is active.

Going forward, an upside move above a six-month high at 141.50 will drive the asset toward a 61.8% Fibo retracement at 142.58 and 04 October 2022 low at 143.89.

On the flip side, a confident break below June 06 low at 139.09 will drag the asset toward March 08 high at 137.92 followed by March 02 high at 137.10.

Technical Levels: Supports and Resistances

USDJPY currently trading at 141.1 at the time of writing. Pair opened at 140.35 and is trading with a change of 0.53 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 139.58, 50 SMA 136.71, 100 SMA @ 134.89 and 200 SMA @ 137.24.

The previous day high was 141.5 while the previous day low was 139.94. The daily 38.2% Fib levels comes at 140.91, expected to provide support. Similarly, the daily 61.8% fib level is at 140.54, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 139.7, 139.04, 138.14
• Pivot resistance is noted at 141.26, 142.16, 142.82

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