USD/JPY (current price: 109.00)
USD/JPY remains probably the most watched forex pair, as traders treat the Yen as the best indicator of global investor sentiment. The pair had a huge day with both the FED and the Bank of Japan deciding on their monetary policies. The FED released a slightly more hawkish statement than in March while the BOJ failed to introduce yet another round of easing, which caused a sharp decline in USD/JPY following the explosive move on Friday. Before the BOJ, the pair rose back to almost 112, after hitting 107.5 just two weeks ago. The wild ride is expected to continue after this morning’s steep fall.
Our assessment: Further volatility is likely in the pair with strong resistance zones around 110.5, 113 and, 115. The 200-day MA is still way above the current price at 118.25 while the 107.5-108 zone should provide support.
