USD/JPY muted near 124.80 on BOJ status-quo

FXStreet (Mumbai) - The US dollar remains little changed and trades modestly flat versus the Japanese currency in the mid-Asian session, with USD/JPY stuck in the upper band of 124 handle. The major showed no reaction to the latest Bank of Japan (BOJ) monetary policy decision which showed that the central stood pat on its monetary policy settings on yet another occasion.

BOJ – a non-event

Currently, the USD/JPY pair trades flat at 124.80, struggling hard to reclaim 125 handle. The dollar-yen pair kept the range following BOJ’s unchanged monetary policy decision while pledging to increase monetary base at annual pace of 80 trln yen.

The Japanese currency was unperturbed by the same old rhetoric by the BOJ citing that the Japanese economy is recovering at a moderate pace and the ongoing QQE is having its intended effect while the inflation trend is seen rising.

Looking ahead, markets now await fresh cues from BOJ Governor Kuroda’s press conference ahead of Europe open while the main focus still remain the US payrolls due later in the New York session. NFP are expected to post 225,000 growth for July, unchanged from 223,000 in June.

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USD/JPY Technical Levels

To the upside, the next resistance is located 125.03 (Aug 5 High) levels and above which it could extend gains 125.69 (June 8 High) levels. To the downside immediate support might be located at 124.32 (June 5 Low) below that at 124 levels.

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