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USD/JPY unperturbed by Kuroda, stays around 100-DMA

FXStreet (Mumbai) - The USD/JPY pair continues to trade largely unaffected around 100-DMA at 120.59 levels even though BOJ’s Kuroda reiterated readiness to do more easing if required.

Offered near 200-DMA

The rally in the USD/JPY pair ran out steam near its 200-DMA located at 121.45 levels and fell back to 120.80 levels. The sharp sell-off began after the BOJ cut rates to negative territory. BOJ’s Kuroda, at the press conference, reiterates that bank will lower rates further if needed.

The comments were largely in the line with policy statement. Hence, markets had little reason to offer JPY. Ahead in the day, the US preliminary GDP estimate release could influence the pair.

USD/JPY Technical Levels

The immediate resistance is located at 120.91 (50% of May 2015 high-Jan 2016 low), above which the pair could test 200-DMA at 121.45. A break higher would expose 122.08 (61.8% of May 2015 high-Jan 2016 low). On the other hand, a break below 50-DMA at 120.41 could send the pair down to 120.00, under which the pair could test 119.75 (38.2% of May 2015 high-Jan 2016 low).

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