This morning the Bank of Japan, in a short and direct statement maintained their current key lending rates and announced no new monetary policy.
Overseas economies still have not emerged from a deceleration phase on the whole but some improvement has recently been observed in the U.S. economy and the sluggish European economy has stopped deteriorating, the central bank said. The BoJ kept key rates and also announced it would increase the amount of loans available through its growth supporting facility by 2 trillion yen ($24.35 billion)
The Yen opened th day trading at 82.23 and fell as low as 81.97 anticipating the Banks decisions and climbed as high as 82.48 to settle down at 82.19. close to the open.
The Yen has been trading at a level close to World War II and has been slowly moving back up against the USD. Exporters in Japan to make profit need the pair to trade above the 82.00 level.
The Bank of Japan in their last statement revealed that they have not purchased any Yen or made an interventions into the markets.
Japan has been reporting a historical trade deficit for the first time in history. The economy has been suffering since the tsumani last year. Having to import oil to replace the loss of nuclear power, is costly.
USD/JPY Pivot Points (Time Frame: 1 Day)
Name S3 S2 S1 Pivot R1 R2 R3