FxWirePro: USD/JPY edges slightly higher from 5-week lows, yen offered after BoJ cuts Japan's growth forecasts
FxWirePro: USD/JPY extends range trade after BOJ’s status-quo, US-China tussle to keep downside pressure
USD/JPY chart - Trading View
USD/JPY was trading range bound on the day at 107.53 at around 03:30 GMT, intraday bias neutral.
BOJ’s inaction during the early Friday left trades unimpressed. The Japanese central bank left monetary policy unchanged during the surprise meeting as widely expected.
The BOJ announced additional measures to support the economy, citing virus outbreak fears, and showed readiness to act.
Latest updates from China’s 13th National People's Congress (NPC) weigh on the risk-tone and help the Japanese yen to extend recoveries, weighing on the pair.
NPC cut the GDP target for 2020, and signaled readiness to tighten grip in Hong Kong, which in turn will escalate China's tussle with the US.
USD/JPY is extending sideways grind below 108 handle. The major is losing its bullish stance.
Oscillators are poised to retrace from overbought levels and GMMA shows minor trend has faded its upside bias.
Strong support is seen at 200H MA at 107.37. Break below will see further weakness. Dip till cloud base at 106.70 likely.
Break below cloud will open downside for the pair. Upside only above 110-EMA at 108.07.