Forex: USD/JPY holding above 84.00 ahead of BoJ

FXstreet.com (Barcelona) - USDJPY is currently at 84.13, off its recent daily low at 83.93, printed just moments ago following the NY close above 84.40, and retracing from a previous fresh almost 20-month high at 84.60 by early NY trade, so a decent dive there. As founder at FXWW Sean Lee puts it: "The JPY shorts will be tested for conviction today as we have the BOJ two-day meeting ending and this will undoubtedly cause volatility in the Yen crosses."

The analyst adds: "There is some talk that the BOJ may refer to its inflation target, after the LDP election win and its policy of having a less-independent BOJ and a 2% inflation target. I would be extremely surprised if the BOJ says anything drastic, central bankers are generally not swayed by whatever politicians may say in the run up to an election!." USDJPY is still a +0.72% higher for the week. BoJ decision will be expected starting from 03:30 GMT, with Bloomberg reporting 17 out of the 21 economist surveyed are expecting some form of boost measure.

Immediate support to the downside for USDJPY lies at mentioned daily low/Friday's high 83.95, followed by Tuesday's lows at 83.80, and Monday's low at 83.60. To the upside, nearest term resistance shows at Monday's and previous weekly high at 84.44, followed by yesterday's fresh almost 20 month high at 84.60, and Feb 16 2011 highs at 84.98.