The USD/JPY pair trades at the lower end of its weekly range flirting with the post-Fed low at 108.62. The risk is skewed to the downside as yields retreat, according to FXStreet’s Chief Analyst Valeria Bednarik.
See – USD/JPY: BoJ tweaks policies provide no reason to sell the yen – MUFG
Key quotes
“The Bank of Japan expanded the JGB yield target band and dropped the ETF buying target, adding more flexibility to its monetary policy. The BoJ kept the maintained rates at -0.1% and long-term rates at zero but dropped from the policy statement its reference to a 6 trillion yen target for annual purchases of exchange trade funds. Also, it tweaked its stance on letting long-term rates move between -025%/+025%.”
“The USD/JPY pair is at risk of extending its decline in the near-term, according to the 4-hour chart. The risk is skewed to the downside as long as the pair remains below 109.00. Still, the pair will likely continue to depend on US yields behaviour.”
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