The Bank of Japan triggered some noise during the early Asian session, with headlines reporting policymakers are considering lowering their forecast for economic growth and inflation this year. The central bank members see little merit in an interest rate cut this month, but rather prefer to save ammunition for the case economic conditions deteriorate further. The Dollar-Yen fell but there was no follow-through, as it settled around the 108.60 for a third consecutive day, waiting for equities to lead the way.
The Dollar-Yen broke above the Bullish Flag pattern as well as the 50-day moving average, signaling potential further gains, as the bulls are attempting to retest the recent highs 108.9. The bears however, need to close below 108.30 to tilt the odds into their favor.
Support: 108.45 / 108.30
Resistance: 108.70 / 108.90