- USD/JPY respects the BOJ’s easing with a decline.
- Risk reset witnessed amid a light calendar, Australia nears easing lockdown while Japan likely standing on the other end.
- Governor Kuroda’s speech will be the key ahead of US data, virus updates remain as the key.
With the BOJ proving right the early estimation of no limits on the JGB buying, USD/JPY drops 12 basis points (bps) to 107.40 amid the early Monday.
Read: Breaking: BOJ eases policy further, boosts purchases of corporate bond, commercial paper, USD/JPY unfazed
Other than removing upside limits on the Japanese Government Bonds (JGBs), the Bank of Japan also trimmed its 2020 GDP and price forecasts, as expected earlier, during today’s short meeting.
Market’s risk-tone sentiment recovers at the week’s start despite a lack of major data. Traders might have concentrated on the hopes of the early exit of Aussie and New Zealand lockdowns while paying a little heed to the likely extension of the national emergency in Japan, as signaled by Bloomberg.
It should also be noted that the pie from Bloomberg said, “Tokyo recording a second straight decline in the daily toll Sunday with 72 new coronavirus cases, the first time in 13 days that the number of infections has been below 100. Deaths in the city passed 100 on Saturday.”
On the other hand, data from the Centers for Disease Control and Prevention (CDC mentioned that the US death toll increases 2,020 to 52,459 as of 4:00 PM April 26 while the cases surged to 928,619 as of 4:00 PM April 26 against 895,766 at 4:00 PM on April 25.
Traders will now keep eyes on the Governor Haruhiko Kuroda’s press conference on 06:00 GMT for further details ahead of the US session comprising the Dallas Fed Manufacturing Business Index for April, prior -70.
Technical analysis
The pair remains chopped inside a monthly descending triangle between 107.70 and 106.90. Also exerting the downside pressure on the pair is 200-day SMA, currently around 108.30.
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