USD/JPY Technical Analysis: Key Scenarios as We Wait for US Job Numbers

Source: Forex News

The Japanese Yen fell after the Bank of Japan announced its monetary policy decision early today. As expected the BOJ left interest rates unchanged. The officials voted 8-1 to leave rates unchanged at 0% for long term government bonds and -0.1% for the short-term ones. In addition, they stuck with the pledge to continue with the asset purchases worth $750 billion.

The biggest market mover was the BOJ’s failure to give forward guidance on the future of monetary policy. Recently, in a speech to parliament, Governor Kuroda gave a forward guidance for the bank. He promised to consider starting normalizing in April next year.

This was an interesting move, especially coming from a governor who has ignored offering forward guidance.

If the BOJ follows through and starts normalizing, it will be in sync – albeit late – with other major central banks which have already started normalizing.

Today, the pair will be weighed down by the American job numbers which will come later today. Traders expect the unemployment rate to fall to 4.0% and the economy to have created 200K jobs in February.

Depending on the data, the pair could either fall to 105.4 or move higher to above 107.

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