#USDJPY @ 150.261 rebounded above 150.00 after dovish guidance on interest rates from the BoJ.

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• USD/JPY rebounded above 150.00 after dovish guidance on interest rates from the BoJ.

The pair currently trades last at 150.261.

The previous day high was 149.86 while the previous day low was 148.81. The daily 38.2% Fib levels comes at 149.21, expected to provide support. Similarly, the daily 61.8% fib level is at 149.46, expected to provide support.

The USD/JPY pair reclaims 150.00 as the Bank of Japan (BoJ) Governor Kazuo Ueda delivers dovish guidance on monetary policy. BoE Ueda said that the central bank won’t hesitate to take additional easing measures if required to keep inflation comfortably above 2%.

In the monetary policy decision, the BoJ kept interest rates unchanged negative at 0.1% as expected by the market participants. The Japanese economy is managing to keep inflation above 2% consistently but price pressures are broadly prompted by external factors. The BoJ is interested in keeping inflation above the 2% target comfortably through higher wage growth for which the continuation of expansionary policy stance is highly required.

The BoJ tweaked its Yield Curve Control (YCC) by redefining 1.0% as an “upper bound” in order to provide more room for flexibility. This would continue large-scale bond-buying. BoJ Ueda commented that an improvement in the YCC flexibility was appropriate. Kazuo Ueda is confident that the central bank is gradually getting closer to achieving the price target.

Meanwhile, the market mood remains downbeat due to deepening Israel-Palestine tensions. S&P500 futures generated some losses in the Asian session ahead of the monetary policy decision by the Federal Reserve (Fed). The Fed is expected to keep interest rates unchanged in the range of 5.25-5.50% as consumer inflation is easing consistently and higher US long-term bond yields are performing the job of the central bank effectively.

The US Dollar Index (DXY) faces selling pressure while attempting to extend upside above the immediate resistance of 106.40 on expectations that the Fed will deliver a neutral decision but will keep doors open for further rate-tightening.

Technical Levels: Supports and Resistances

USDJPY currently trading at 150.21 at the time of writing. Pair opened at 149.1 and is trading with a change of 0.74 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 149.48, 50 SMA 148.25, 100 SMA @ 145.35 and 200 SMA @ 139.97.

The previous day high was 149.86 while the previous day low was 148.81. The daily 38.2% Fib levels comes at 149.21, expected to provide support. Similarly, the daily 61.8% fib level is at 149.46, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 148.65, 148.2, 147.6
• Pivot resistance is noted at 149.7, 150.3, 150.75

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