USD/JPY: BoJ Expands Stimulus Again

USD/JPY: BoJ Expands Stimulus Again

For the 24 hours to 23:00 GMT, the USD weakened 0.15% against the JPY and closed at 84.24. The Yen continued to remain under pressure amid expectations that the Bank of Japan (BoJ) would unveil more monetary stimulus when its two-day policy meeting ends on Thursday.

In economic news, the all industry activity index rose 0.2% (MoM) in October, following a 0.4% drop in September. Meanwhile, the leading index rose to a reading of 92.8 in October, compared to reading of 92.5 recorded in the preliminary report, while the coincident index climbed to a reading of 90.7 in October, higher than the preliminary reading of 90.6.

In the Asian session, at GMT0400, the pair is trading at 84.18, with the USD trading marginally lower from yesterday’s close. The BoJ maintained its interest rate at 0.1%.

The BoJ expanded its asset-purchase program for the third time in four months, and is expected to reconsider its objectives for inflation as incoming Prime Minister, Shinzo Abe, urges more action to end price declines

The pair is expected to find support at 83.88, and a fall through could take it to the next support level of 83.57. The pair is expected to find its first resistance at 84.55, and a rise through could take it to the next resistance level of 84.92.