The USDJPY pair was trading absolutely flattish during the London session on Friday and failed to react in a volatile way on the Bank of Japan monetary policy meeting. The pair was therefore seen hovering around 109.35 in the morning.
The Bank of Japan left monetary policy unchanged and the main rate was kept in the negative territory at -0.1%. The yen failed to move despite the BoJ removal of timeframe for price target, which could be interpreted as slightly hawkish for the JPY bulls.
Investors will turn their eyes to today’s US GDP report for the first quarter of this year, which is forecast to slow notably to 2.0% from 2.9% previously. However, the first quarter is usually weaker because of winter months, cold temperatures and bad weather. Additionally, the University of Michigan consumer sentiment gauge will be released.
The support is now seen at the 100 day moving average near 109.00 and if not held, the pair might deteriorate to the key support line around 108.50. The trend seems bullish as long as the greenback trades above these two levels.
On the other hand, the resistance is at this week’s highs at 109.50 and if broken, bulls could push the US dollar to the 110 barrier.
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