USD/JPY: eyes for the 113 handle, first hurdle is 112.80 and export offers

Currently, USD/JPY is trading at 112.47, up 0.00% on the day, having posted a daily high at 112.57 and low at 112.40.

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USD/JPY  has been the hardest hit on the back of the market's reaction to the FOMC announcement on Wednesday and dovish BoJ outcome.

USD/JPY was clearing through the barrier option 112 level like a knife through butter yesterday and moved up to test the bear's commitments at the key 112.80 level, being the 76.4% retracement of the 114.49-107.32 fall. There was a slide back to 112.14 early doors in the NY session on profit taking and possibly due to fresh N.Korean concerns. 

However, the BoJ is a weight on the yen, having left policy as is with the 10-yr JGB target at zero with a short-term rate target at -0.1% with one dissenter, Kataoka who actually felt more was needed also a big weight on the yen. The asset buy programmes are to remain as is as well and voted for unanimously at Yen-80T at a yearly pace. 

USD/JPY levels

Valeria Bednarik, chief analyst at FXStreet explained that the pair remains biased higher according to technical readings, as in the 4 hours chart, the price continues developing well above its 100 and 200 SMAs, whilst the Momentum indicator is aiming to regain its bullish strength as the RSI indicator remains within overbought territory. The immediate resistance comes at 112.86, July 17th daily high, and an advance beyond it will open doors for a recovery up to the 114.40 price zone, where the pair topped out in May and July.