USD/JPY Trade Sideways – BOJ Leaves Policy Rate at -0.10%
Arslan Butt • 1 min read
The Bank of Japan left the interest rate at -0.10% by a 7-2 majority vote. Since the decision isn’t surprising and was already expected, the market hasn’t reacted much. In fact, the USD/JPY is consolidating below a strong resistance level of 112.400.
On the 2 – hour chart, the RSI is trading above 80 and the pair has entered the overbought zone. We can also see a series of doji and shooting star candles below 112.400, which is signifying that the bulls are exhausted and we may see bears entering the market soon.
Speaking of the support and resistance, the 23.6% Fibo level is likely to provide support at 112.200 and the additional support prevails at 112.100 (38.2% Fibo level). While the bullish breakout of 112.400 can lead the pair towards $112.600.