FxWirePro: USD/JPY holds nominal gains, BoJ stands pat, extends pandemic-relief programme

USD/JPY chart - Trading View 

USD/JPY was trading 0.05% higher on the day at 110.22 at around 05:00 GMT, erasing part of previous session's losses.

The Bank-of-Japan after concluding a two-day monetary policy review meeting on Friday, kept its monetary policy settings unchanged as widely expected.

BoJ kept its 10-year Japanese Government Bond (JGB) yield target around 0% and a short-term interest rate target at -0.1%. 

The central bank extended the pandemic-relief program beyond the current September deadline by six months to March 2022.

The yen slid against the majors as an immediate reaction to the decision. USD./JPY hit session highs at 110.33 before paring some gains.

US dollar retains its bullish bias despite weaker than expected Philadelphia Fed manufacturing index and jobless claims overnight.

Federal Reserve’s upgraded economic projections gave everyone the confidence that the recovery will gain traction.

Investors will likely ok past data weakness. Technical bias for the pair is bullish. Pullbacks are likely to be shallow.