Home USD/JPY Price Analysis: BoJ Holds Rates at Last Policy

USD/JPY Price Analysis: BoJ Holds Rates at Last Policy

  • The BoJ maintained policy during Governor Haruhiko Kuroda’s final policy meeting.
  • The number of Americans who filed for unemployment benefits surged last week.
  • Investors are eagerly awaiting the US nonfarm payroll data.

Today’s USD/JPY price analysis is bullish. The Bank of Japan maintained its stimulus levels on Friday, leading to a yen decline.

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Meanwhile, the dollar’s rally came to a halt as an increase in US unemployment claims dampened hopes of more aggressive rate hikes from the Federal Reserve.

After a sudden drop of up to 0.62%, the yen was last down roughly 0.15% at 136.36 after the BOJ maintained its policy. This was during Governor Haruhiko Kuroda’s final policy meeting before retiring. Earlier in the week, the yen fell to a level not seen in almost three months, at 137.90.

Although many analysts believe that the BOJ’s ability to control the bond yield curve is ending, recent policymakers have made it clear in their speeches that they would prefer to delay making significant policy changes. At least until Kazuo Ueda, Kuroda’s successor assumes office in April.

Although there was minor fluctuation against the yen on Friday, the US dollar remained unchanged.

According to data released on Thursday, the number of Individuals who applied for unemployment benefits surged last week for the first time in five months. However, the overall trend continued to point to a tight labor market.

Still, the increase in unemployment claims was significant enough to prompt some traders to reverse bets on a significantly bigger increase in US interest rates.

USD/JPY key events today

Investors are eagerly awaiting US jobs data. The nonfarm payrolls and the unemployment rate reports will play a significant role in the Fed’s future policy moves.

USD/JPY technical price analysis: Bulls approaching the 137.02 resistance

USD/JPY technical price analysis

The 4-hour chart shows USD/JPY trading near the 30-SMA, after a strong bullish candle. There might soon be a sentiment shift from bearish to bullish as the RSI has tried to cross above the 50-mark. Bears failed to trade below the 30-SMA, allowing the bulls to take over.

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However, bulls are facing a strong resistance level at 137.02. If they can break above this level, we might see the price climbing to the 138.00 resistance level. The price will break below the SMA if the resistance level holds firm.

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Saqib Iqbal

Saqib Iqbal

Saqib Iqbal is a market analyst, prop fund trader and mentor, serving the industry with his analysis and educational content since 2011. The author has great exposure to different financial markets and institutions. He's well-known for his day trading reviews and multiple timeframe analysis.