FXStreet (Mumbai) - The Japanese yen retains gains against its American counterpart following the release of the Bank of Japan (BOJ) monetary policy decision, with the policy kept steady for yet another month now.
USD/JPY eyes strong support near 5-DMA at 123.17
Currently, the USD/JPY pair trades -0.24% at fresh session lows of 123.33 retreating slightly from 123.50 region seen pre-BOJ statement release. The major keeps losses and languishes near lows as fresh buying was seen in the yen after the BOJ made no changes to its monetary policy meeting today.
The policy decision was viewed as absolutely dry, with the central bank sitting tight on the monetary policy for more than a year now. The statement echoed the same story, citing that the economy is recovering at moderate pace and that the price trend is seen rising on the longer-term perspective.
Adding to further strength in the Japanese currency, the latest Japan’s trade balance data surprised markets with surplus recorded for the first time since March this year. Japan's trade balance swung back in surplus by JPY111.5 billion in October after recording a deficit of JPY114.5 billion in Sept.
Looking ahead, markets continue to digest the latest BOJ policy decision in wake of the recent FOMC minutes and now focus on Governor Kuroda’s presser scheduled at 0630GMT.
USD/JPY Technical levels to watch
The price clings to 123 handle and now faces immediate resistance at 123.75 (Nov 18 High). A break above the last, the major could test 124.17 (Aug 20 High). To the downside, the immediate support in sight at 123.17/14 (5-DMA/ Nov 17 Low) below which 123.03 (10-DMA) would be tested.
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