Partially on the news that the Bank of Japan is keeping monetary policy steady, both USDJPY and EURJPY gained a few ticks. What does a steady monetary policy mean? It devalues the Yen as it is a sign that the Japanese economy isn’t picking up sending a bearish wave of sellers.
USDJPY is in the spotlight as it shows the U.S. Dollar strength may be returning. A bit of supply & demand concept, but this pair hits the demand zone once again and doesn’t break through it. Once we pair this with the rally and then sell-off that broke through the support turned resistance zone, it gives this pair greater room to move upwards and extend its original trend.