Key Levels in the USD/JPY Ahead of the BOJ

We’ve had a few central bank’s monetary policy meetings of late and for the most part, we haven’t really been seeing any major changes. That trend looks likely to continue with the BOJ today.

Inflation is ticking along higher, however, there appears little chance that we will get any changes. As in reality the target rate is still a long way off.

As a result the meeting could very well be uneventful.

Earlier we did get some Japanese data on the trade balance, which was a little more positive than anticipated.

Exports in particular ticked higher at 6.6% which was well above consensus.

Key Levels

The USD/JPY has been on an upward trajectory over the last month. With the Yen it is always the round and half levels that are of most interest.

Given the uptrend, I like 112.00 as a possible area for a long entry. That would be in the pullback zone on the longer-term charts.

112.50 will provide some resistance, but clearly, the swing high is at 113.00. I’m also looking for selling pressure under 112.50 in today’s trade.