Support – 111.00, 110.67, 110.00
- USD/JPY was rejected at 50-DMA, as Fed failed to offer any clues regarding the timing of rate hike.
- Now the focus is on BOJ. Talks of negative rate on loans was out on the wires last Friday. Since then, USD/JPY has rallied 200-pips or so.
- Pair could head higher if BOJ over delivers, although sustainability of the rally is doubtful, since negative rate driven rally on Jan 29 had quickly fizzled out. On the other hand, pair could fall back below 110.67 if BOJ under delivers.