USD/JPY sees little action after BOJ maintained status quo

• BOJ kept rates unchanged as expected.
• Upgraded assessment of overseas economies
• USD/JPY sees little action, remains bid on fading N.Korea risks.
• Focus of Kuroda speech.

The Bank of Japan (BOJ) kept the interest unchanged as expected and upgraded the assessment of overseas economies, but the USD/JPY is not impressed.

The pair continues to trade at 106.70 - the level seen before the BOJ rate decision. The spot hit a high of 106.94 earlier today as fading North Korea risks triggered much-awaited correction in the overbought Japanese Yen.

Focus on Kuroda

BOJ governor Kuroda is likely to reiterate the necessity to keep the policy accommodative. The Japanese Yen may pick up bid if Kuroda talks about QQE taper.

USD/JPY Technical Levels

A break above 107.00 (psychological figure) would expose resistance at 107.68 (Feb. 27 high) and 107.91 (Feb. 21 high). On the downside, breach of support at 106.15 (session low) could yield a re-test of 105.55 (Feb. 16 low) and 105.25 (Mar. 3 low).