USD/JPY (current price: 101.35)
The head of the Bank of Japan reiterated that the bank will do everything to reach its “over 2%” inflation target after a year of strong gains by the Yen. Investors remained pessimistic about the goals of the BOJ, as the central bank failed to generate inflation despite its negative interest rates, and the broad asset purchasing program. The pair trended higher throughout the day, as the Dollar was pushed higher by the good GDP number and the positive Consumer Confidence release in late trading.
Our assessment: USD/JPY is trading just above the 100 level despite Friday’s rally, as the long-term trend still favors, the Yen, with strong resistance at 103.80 and near 105.50.
