USD/JPY jumps to fresh 10-day tops near 111.25 ahead of BOJ

The USD/JPY pair extends its Asian break higher beyond 111 handle, as we head closer towards the BOJ’s monetary policy announcement, which is widely expected to be a non-event.

USD/JPY nears 50-DMA at 111.33

Despite a phase of upside consolidation in the greenback across the board, the renewed uptick in the major is gaining traction, as the Yen sellers have returned to markets amid expectations of no new surprises likely to be offered by the Japanese central bank.

The BOJ is expected to maintain status-quo at its monetary policy decision, and would also refrain from providing any hints on the stimulus exit plans until 2% price target is achieved.

Meanwhile, the USD bulls take a breather after the recent FOMC-led extensive rebound, leaving the USD index largely flat-lined near 12-day highs of 97.56.

The immediate remains on the BOJ policy outcome, which could be announced any time soon, ahead of the US housing and consumer sentiment data. Also, speech by FOMC member Kaplan will be closely eyed for fresh cues on the hawkish Fed rate hike.

USD/JPY Technical levels                 

Jim Langlands at FXStreet offers technical levels for the spot: “The 4 hour/daily momentum indicators look as though we could see further gains, and once above 111.00 there is not too much to stop it heading towards 111.50 then to 111.70, beyond which could head towards 112.00/20. The downside will find bids at 110.50 and again at 110.30, and for the time being buying dips, with a SL placed under 110.00 seems to be the plan.”