USD/JPY: Further selling pressure – TDS

The Bank of Japan (BoJ) policy announcements were largely in line with expectations and leaks in the Japanese press, per TD Securities. USD/JPY remains heavy in its wake, trading at 107.173.

Key quotes

“BoJ maintained the policy balance rate at -0.1% and 10y yield target at 0%. Changes to policy include enabling unlimited JGB buying, raising the ceiling for buying of corporate bonds and commercial paper, and removing price momentum from forward guidance.”

“We remain focused on a test of key support at 106.92. In addition, we note the top of the Ichimoku cloud comes in just above this mark at 107.03. The cloud is quite narrow right now and spans down merely to 106.71.”