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USDJPY : Yen Higher on BOJ Hawkish Comments

USDJPY weakened today after the Bank of Japan refrained from more monetary policy easing. The Bank of Japan projected that Inflation will exceed 2% two year from now, showing an end to deflation without adding more stimulus. The bank maintained its pledge to increase base money at an annual pace of 60 trillion to 70 trillion yen. Economists were expecting further easing.

On the hourly chart of USDJPY, the pair fell down from the key resistance at 102.64 and found support at 102.34. The pair tried to trim its losses and rose but failed to remain higher and again fell down finding resistance at 102.60. Now the investors are waiting for the key US data (ADP Non farm employment change, GDP and FOMC statement) which might drive the pair in different direction.

Looking at the 4 hour chart, seems like the pair is following a rising channel trend and should find support from the rising support trend line. Breaking below this support trend line will give bearish signal.