Japanese Yen Appreciates, BoJ’s Policy Rate Decision in Focus; Jan 20, 2021

Bank of Japan’s Interest Rate Decision

Japan’s Interest Rate Decision is due tomorrow on Jan 21 but the release time of such event is not confirmed. Usually it releases around 0230 GMT/0800 IST. Indeed it is highly important data for any country capturing high market movement too but in case of Japan, the scenario is totally different. The reason for less market volatility is, no new policies have been introduced by BOJ to fight covid and political uncertainty only. The scenario will be different only in case BoJ governor come up with key measures to boost the Japan’s economy and relief package.

Let’s see how Japanese Yen has reacted during the previous data release:

Dec 18:

Oct 29:

Technical View:

USD/JPY: The pair spikes down and touches 103.70 mark in U.S. session. The pair made intraday high at 103.92 and low at 103.70 mark. A sustained close above 104.22 requires for the upside rally. Technical tools like RSI and EMA indicate downside trend for the time being. Alternatively, a consistent close below 103.68 will test key supports too.

Key Resistances: 104.22, 104.90, 105.40, 105.94

Key Supports: 103.52, 102.90, 102.45, 102.10

Take a look and do trade wisely!
Good Luck