Usdjpy Flat Post Boj Surprise

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Usdjpy Flat Post Boj Surprise

Usd/Jpy Flat Below 153.00 Resistance Post Boj Surprise

The USD/JPY pair is trading mostly flat below the 153.00 handle after the BoJ's surprise. The Bank of Japan has surprised the markets with a 15 bps rate hike, a first of its kind.

The surprise from the BoJ led to wild swings in the USD/JPY pair on both sides. A price movement like this is a sign of the market's indecisiveness as the participants tried to figure out whether this is positive or not!

Usd/Jpy Trades In A Tight Range

Now, the market is awaiting the press conference from the BoJ's governor, Ueda, to get insights on the latest actions of the central bank.

Right now, the USD/JPY is trading in a tight-range with a back-and-forth action just below the 153.00 resistance. It seems that most of the investors are now on the sidelines as they want more clarity on the recent BoJ's action. Additionally, the Fed's announcement is also scheduled later which is also a key event for the USD/JPY pair.

If we keep the recent back-and-forth price action aside, one thing becomes clear: The JPY has gained a lot of ground in the last 3 weeks against the Greenback due to its safe-haven appeal. Furthermore, the political uncertainty and the economic problems of China have further tipped the balance in favor of JPY.

Now, the focus is on the next BoJ meeting, during which the central bank is expected to unveil more rate hikes. This will be part of a larger plan for the normalization of policy. The central bank is also expected to announce a plan to slow down bond-buying operations, which will strengthen the JPY.

Meanwhile, the DXY seems to be showing a slight recovery which has also stopped the decline in the USD/JPY for now. Right now, the DXY is present near 104.50 with a slight bullish bias for the short-term.

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