USD/JPY hovers around 105.00, BoJ decision eyed

USD/JPY recovered some of its Friday’s losses and managed to regain the 105 mark during the American session ahead of the Bank of Japan’s decision, to take place next Asian session. 

USD/JPY started the week on a soft note and extended the decline to a low of 104.37 before turning higher. The pair reached a peak of 105.22 and it was last trading around 105.00, up 0.25% on the day.

The Bank of Japan will announce its policy decision around 03:00 GMT on Tuesday although no changes are expected at this point.

Data showed, US PCE price index, the Fed's preferred gauge of inflation, rose 0.2% in September from the prior month and 1.2% from a year earlier, marking the fastest annual pace since November 2014.

USD/JPY levels to consider

In terms of technical levels, next resistances are seen at 105.50 (Oct 27 high), 106.00 (psychological level) and 106.71 (Jul 25 high). On the other hand, supports could be found at 104.28 (10-day SMA), 103.84 (21-day SMA) and 103.15 (Oct 19 low).