In European trading on Friday (Oct 28), the/low recovered to trade at 146.53, up 0.25%.
It announced at midday that it would keep policy unchanged at minus 0.1 per cent, keeping the 10-year JGB yield target at around 0 per cent, in line with market expectations.
On the bond front, the BOJ said it would continue its daily fixed-rate market operations at a fixed rate of 0.25% and stressed that it would not hesitate to ease more if necessary, reiterating that there was no limit to buying JGBS.
The BOJ kept its forward guidance on interest rates unchanged and said it expected short – and long-term policy rates to remain at present or lower levels.
Usdjpy returned to early session levels while recovering from session lows to 146.25 heading into Friday’s European session.
Notably, the JPY pair painted a 100-point move on BOJ inaction, but continued to trade below short-term key support and now resistance, leaving sellers hopeful ahead of BOJ Governor Kuroda’s speech.
