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- USD/JPY trades near 103.42, representing a 0.32% gain on the day.
- The BOJ kept interest rates unchanged, extended the corporate funding package as expected.
- The oversold bounce in the US dollar powers USD/JPY higher.
USD/JPY continues to trade near the session high of 103.42, with the Bank of Japan (BOJ) deciding to extend the March 2021 deadline for the package of measures to ease corporate funding strains by six months.
The policy statement released soon before press time showed:
- The central bank decided to keep the interest rate unchanged at -0.1% and maintain the 10-year JGB yield target around 0%.
- The bank sees no need to change the yield curve control framework.
- The policymakers will consider further extending the fund-aid program if needed (dependent on the pandemic impact).
- While Japan’s economy is picking up, the central banks expect the recovery pace to be moderate.
Overall, the monetary policy decision was in line with expectations. As such, it has failed to have any impact on USD/JPY.
The US dollar’s broad-based recovery pushed USD/JPY higher from 103.05 to 103.43 ahead of BOJ’s decision. The greenback looks poised for a bounce as market positioning appears wildly short, and technicals look a touch oversold. As such, USD/JPY may see further gains.
Technical levels
This article was originally published by Fxstreet.com. Read the original article here.