USD/JPY remains bid after status quo BOJ

• USD/JPY retains bullish bias after BOJ’s status quo rate decision.  
• The central bank revised lower inflation forecasts.  

USD/JPY remains on the hunt for 110.00 after the Bank of Japan (BOJ) kept key policy tools unchanged as expected.  

The decision on maintaining yield curve targets was made by a 7-2 vote with board members Kataoka and Harada dissenting.  

The central bank also revised lower the median core consumer price index (CPI) forecast for fiscal year 2019/20 to 0.9 percent from the forecast of 1.4 percent made in October.  

The downward revision of inflation projections was expected and reinforces the consensus that the BOJ is unlikely to begin normalizing its accommodative policy anytime soon.  

Put simply, BOJ policy outlook is biased toward the JPY bears.  

As of writing, the USD/JPY pair is trading at 109.75. The bull flag breakout and the risk-on action in the S&P 500 futures favor a rally to the psychological hurdle of 110.00.  

USD/JPY Technical Levels