For the 24 hours to 23:00 GMT, the USD declined 2.51% against the JPY and closed at 107.39 on Friday.
In the Asian session, at GMT0300, the pair is trading at 107.48, with the USD trading 0.08% higher against the JPY from Friday’s close.
The Bank of Japan (BoJ), in its latest policy meeting, kept its interest rate unchanged at -0.1%, as widely expected. Further, the central bank removed limits on its government bond purchases and increased corporate debt buying to help companies hit by the coronavirus crisis. Additionally, the BoJ pledged to buy bonds in a flexible manner to conduct its yield curve control, which guides long-term interest rates to around 0%.
The pair is expected to find support at 107.32, and a fall through could take it to the next support level of 107.16. The pair is expected to find its first resistance at 107.69, and a rise through could take it to the next resistance level of 107.90.
Moving ahead, traders would keep a watch on Japan’s unemployment rate for March, slated to release overnight.
The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving averages.
