USD/JPY re-approaching 113

Following yesterday's steep fall, the USD/JPY remains relatively calm on Thursday, struggling to extend its losses and riding the familiar support around 113 region. At the moment, the USD/JPY is down 0.3% at 113.05.

BoJ on hold

The BoJ didn't make any changes to its monetary policy after today's meeting, matching the general market consensus. At his press conference, Kuroda said it was appropriate to continue with the current powerful monetary easing and added that there is still some distance to the 2% inflation target.

What's next?

Macro data from the United States were largely ignored as markets seem indecisive about what to do next following yesterday's FOMC decisions. In the week ending March 11, the advance figure for seasonally adjusted initial claims was 241,000, a decrease of 2,000 from the previous week's unrevised level of 243,000. Furthermore, Housing Starts rose by nearly 1.29 million during February while the Philly Fed Manufacturing Index surpassed estimates at 32.8, albeit it dropped from January’s 43.3.

Technical outlook

A follow-through below 112.90 (daily low) could target 112 (psychological level) and 111.65 (Feb. 28 low). On the upside, resistances are located at 113.60 (50-DMA), followed by 114.20 (100-DMA) and 114.88 (Mar. 15 high).