The U.S dollar continues to move higher against the Japanese yen, hitting 113.46, following a break-out in the price of longer-dated U.S bond-yields. The USDJPY currently trades around the 113.40 level, with the Bank of Japan’s monetary policy decision early today having a muted effect on the pairs recent rise.
The BOJ kept short-term rates on-hold at -0.10 percent, and pledged to buy JGB bonds at the current pace, noting inflation is gradually rising. Traders now look to third quarter GDP figures from the United States, and CORE PCE figures for November, which is the FED’s preferred measure of inflation.
The USDJPY pair remains strongly bullish while trading above the 113.10 level, should price-action move above the 113.40 level, buyers may start to target the 113.80 region.
If the USDJPY pair falls below the 113.10 level, sellers may then push the pair towards the 112.70 and 112.40 technical support levels.
