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The Bank of Japan made no changes in monetary policy once again. The ambitious changes made in the April 4th decision are still playing out, and no immediate changes are needed.

Nevertheless, markets were expecting an extension of loans. When this didn’t happen, the yen strengthened and USD/JPY dropped back down, dipped below 98 and didn’t recover back to the high ground near 99.

Some market participants wanted the BOJ to extend the loan maturities from one to two years. Japanese stocks were also disappointed. The drop in the Nikkei stock index also weighed on the pair.

It seems that for further gains, the USD/JPY is in need for new fuel, and without it, the pair will find it hard to add another digit. A few weeks ago, the Japanese government presented a new stimulus plan, and the reaction was similar: the market wanted more and the yen strengthened.

A press conference by BOJ governor Kuroda is still awaited. For more levels, events and analysis, see the USD/JPY forecast.  Here is a live chart:

[do action=”tradingviews” pair=”USDJPY” interval=”60″/]