The Dollar Yen finished little changed, closing in New York at 107.50 from 107.62 on Friday morning. USD/JPY trade was extremely subdued with little volatility resulting in a total trading range of 39 pips. In late March, the currency was trading around 200 pips, at least. Early Asia has seen little change with USD/JPY currently trading at 107.58.
The outcome of today’s BOJ meeting will restrict any substantial Yen gains. Japan has been experiencing a deep economic slump as the country suffered a setback in its coronavirus battle. According to the Japanese Nikkei, the BOJ will discuss shifting to unlimited bond purchases in response to the economic slump. If the Japanese central bank officially announces unlimited bond purchases, USD/JPY will shoot past immediate resistance at 108.00. If there is no announcement, expect USD/JPY to grind back to the 107.00 area.
Immediate resistance lies at 108.00 followed by 108.50 and 109.00. Immediate support can be found at 107.30 followed by 107.00 and 106.70. Look to trade a likely 107.30-108.30 range today with the topside the more vulnerable side.