On Friday, the Bank of Japan announced plans to start a new 75 trillion yen lending program in June, to support coronavirus-hit businesses, while keeping its benchmark rate at -0.1% and 10-year government bond yield target at about 0% unchanged. Meanwhile, it is reported that the Japanese government is finalizing a fresh Y100 trillion coronavirus relief package.
From a technical point of view, on an intraday chart, USD/JPY remains within a bullish channel. Readers may therefore consider the potential for further rise as the nearest resistance would be set at May 21 top at 107.85 and a second one would be set at horizontal resistance at 108.00 in extension. Any break below 107.50 would lower the bullish potential and would lead to a weakness towards strong horizontal support at 107.30.