USD/JPY Trade Sideways – BOJ Leaves Policy Rate at -0.10%

Arslan Butt•Wednesday, September 19, 2018•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.

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ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.