USD/JPY off highs, near 120.70

By FXStreet FXStreet (Edinburgh) – The Japanese yen is now picking up pace vs. its American peer on Friday, sending USD/JPY to the 120.75/70 area.

USD/JPY choppy on BoJ

The pair has now returned to the 120.70 area after hitting session peaks in the mid-121.00s following the steady stance by the BoJ at its meeting today. The central bank left unchanged its monetary expansion at ¥80 trillion vs. expectations that it could expand it towards ¥100 trillion.

At his press conference today, Governor H.Kuroda reiterated that the economy is recovering at a moderate pace and that the ‘virtuous cycle’ remains intact. He further stressed that the ability of domestic consumer prices to reach the 2% goal hinges almost exclusively on crude oil prices.

USD/JPY levels to consider

At the moment the pair is retreating 0.29% at 120.76 with the next support at 119.84 (38.2% Fibo of 125.28-116.46) followed by 118.55 (2-month uptrend) and finally 116.16 (low post PBoC move Aug.24). On the other hand, a breakout of 121.79 (100-day sma) would open the door to 121.91 (61.8% Fibo of 125.28-116.46) and then 123.20 (76.4% Fibo of 125.28-116.46)
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Source:: FX Street