JPY Plunges Lower StillThe Japanese Yen has fallen to it slowest level against the Dollar since 2002 on the back of the April BOJ meeting today. The BOJ reaffirmed its commitment to maintaining an easing presence in the market, stating that it will continue buying bonds daily in line with its aim of keeping bond yields at zero.The latest announcement from the BOJ comes despite the growing wave of central bank tightening and despite the JPY having collapsed in recent months. While the BOJ fears that the domestic economy is too fragile to withstand tightening, critics worry that the country will not recover from the inflationary impact of JPY depreciating so heavily.Looking ahead, the BOJ warned that the outlook in Japan is subject to downside risks as a result of the ongoing conflict in Ukraine which is driving commodities prices higher. With regard to inflation, the BOJ noted that risks are skewed to “the upside for the time being, mainly reflecting uncertainties over energy prices… but are generally balanced thereafter”.Technical ViewsUSDJPYLooking at USDJPY on the monthly chart clearly shows the scale of the recent moves and the key levels we’ve broken through. With both MACD and RSI firmly bullish, the focus is on a continuation higher with the all-time-highs at 146.97 the main target. Indeed, the 100% fib extension target of the bullish leg from 2011-2015 completes just above that level also. In the near term, 134.39 is the next resistance for bulls to contend with while 128.50 is first support.
Source: Tickmill
