USD/JPY retains bid as BOJ extends funding package

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.

Omkar Godbole FXStreet Contributor

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

USD/JPY

Overview
Today last price	103.4
Today Daily Change	0.25
Today Daily Change %	0.24
Today daily open	103.15

Trends
Daily SMA20	104.09
Daily SMA50	104.5
Daily SMA100	105.16
Daily SMA200	106.36

Levels
Previous Daily High	103.56
Previous Daily Low	102.88
Previous Weekly High	104.58
Previous Weekly Low	103.82
Previous Monthly High	105.68
Previous Monthly Low	103.18
Daily Fibonacci 38.2%	103.14
Daily Fibonacci 61.8%	103.3
Daily Pivot Point S1	102.83
Daily Pivot Point S2	102.51
Daily Pivot Point S3	102.14
Daily Pivot Point R1	103.52
Daily Pivot Point R2	103.88
Daily Pivot Point R3	104.2

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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