Summary:

• USDJPY falls close to 4-month low around 110
• JPY on the rise since BoJ meeting
• Price looking to break lower after consolidation

The USDJPY is experiencing a fairly large down day, with the majority of the drop coming on the back of a surge higher in the Yen. We earlier mentioned how the Yen was rising following the Bank of Japan (BoJ) meeting overnight, which saw the main policy tools left unchanged but a hint of higher GDP and inflation ahead int he outlook boosted the currency.   

 The USDJPY is looking to move down to its lowest level since September and attempting to break below the 110 handle. Source: xStation

Persistent weakness in the Buck has seen the USDJPY fall a fair way so far this year and the pair is threatening to make another break lower. The cross has been in range for around 9 month now with 108.40 providing a floor and 114.40 offering resistance. Price is currently sitting around the middle of this range but after a consolidation of just over a week, price is threatening to move towards the lower bound at 108.40. 

 

The USDJPY pair has been in a range of around 600 pips for the last 9 months. Source: xStation