USD/JPY reverses majority of yesterday’s corrective slide after BoJ

After yesterday's corrective slide closer to mid-116.00 region, the USD/JPY pair regained traction and reversed majority of the losses recorded in the previous session. 

Currently trading around 117.80 region, testing session peak, the pair caught fresh bids near 117.00 handle after BoJ decided to keep monetary policy unchanged, on expected lines, and kept interest rates at -0.1%. Meanwhile, the central bank had a more upbeat outlook of the economy, but failed to lend any support to the Japanese Yen. 

Spot maintained its strong bid tone after BoJ Governor Kuroda reiterated the central bank's readiness to adjust monetary policy as needed to maintain momentum towards achieving inflation target. 

Technical levels to watch

From current levels 118.00 handle is likely to act as immediate hurdle above which the pair is likely to aim towards 118.20 resistance. Sustained momentum above 118.20 level now seems to pave way for continuation of the pair's near-term upward trajectory, beyond last week's 10-month high resistance near 118.66 level, towards testing 119.00 round figure mark. 

On the downside, 117.20 level now becomes immediate support to defend, which if broken now seems to drag the pair below 117.00 handle support towards testing 116.70 support, en-route mid-116.00 support.