USD/JPY Rallies as BoJ Continues Ultra-Dovish Policy Approaches
The USD/JPY pair has surged to near the crucial resistance of 135.00 after the Bank of Japan (BoJ) announced a continuation of ultra-loose monetary policy and stability in Japanese Government Bonds’ (JGBs) yields band to maintain an expansionary policy stance. BoJ Governor Kazuo Ueda has confirmed that the central bank will take additional easing steps without hesitation as needed while striving for market stability. This has triggered bullish momentum in the USD/JPY pair, which is currently trading above the 20-period EMA, indicating solid strength in the upside bias.
USD/JPY Bounces Back Amid Defensive BoJ Talks and US GDP Data
The USD/JPY pair has been in a three-day downtrend and is currently trading near 133.50. The Bank of Japan (BoJ) officials have been pushing back the need to alter Yield Curve Control (YCC) and favoring an easy money policy. This could weaken the yen in the long term, but for now, it has been a defensive measure. The recent passage of the “Limit, Save, Grow Act” by the US House of Representatives has caused some market fears and could weigh on the yen pair ahead of the US Q1 GDP.