- Japanese Yen nosedived during the Asian session, due to a major announcement from the Bank of Japan.
- The BoJ Interest Rate Decision was announced by the Bank of Japan in which the central bank decided to reduce the rates from 0.1% to -0.1%.
- The USDJPY pair spiked higher and traded near the 200-day simple moving average.
- The trend is bullish for USDJPY, but we cannot discard the fact that there are many barriers on the way up for the pair.
The USDJPY pair rocketed higher today after the BoJ Interest Rate Decision and traded above the 100-day simple moving average. The pair is currently trading near the 200-day simple moving average, which is acting as a resistance for more gains.
There is also a bearish trend line formed on the daily chart, which acted as a hurdle previously, and may stall the upside move if the pair continues to trade higher.
On the downside, the 50-day simple moving average can be seen as a support area.
BOJ Interest Rate Decision
Today, there were a lot of economic releases lined up in Japan, and the most important one was the BoJ Interest Rate Decision was announced by the Bank of Japan. The market was not expecting any increase or decrease in the interest rates. However, the outcome was negative, as there was a decrease in rates. The central bank reduced the interest rates to -0.1% from 0.1%.
The interest rate decision came as a surprise for traders, and as a result, there was a downside reaction in the Japanese Yen.
The USDJPY pair is in a solid uptrend, but we should not ignore the monster trend line and resistance area formed on the daily chart.