USD/JPY rebounds to test 5-DMA ahead of BOJ?

The USD/JPY pair staged a solid comeback over the last hour, bouncing-off a brief dip below 117 handle, as the bulls look to regain 5-DMA at 117.68 ahead of the BOJ monetary policy decision.

USD/JPY awaits BOJ

Having found solid bids once again near 117 handle, the dollar-yen pair picked-up significant strength post-Tokyo as the yen loses ground amid a better risk sentiment prevalent in the markets.

Moreover, the yen bulls take profits off the table after two back-to-back sessions of gains, as focus shifts to the BOJ decision, which will provide next direction on the major.

Markets are expecting the BOJ to stand pat on its monetary policy settings, although its widely anticipated that the central bank would upgrade is economic outlook, in wake of a weaker yen and positive overseas developments.

JPY: BOJ unlikely to put the brakes on - Nomura

USD/JPY Technical levels to watch 

The major finds immediate resistance at 117.68 (5-DMA). A break above the last, the major could test 118 (round figure) and 118.67 (10-month highs) beyond the last. While to the downside, the immediate support is seen at 117.24 (daily pivot) next at 117 (zero figure) and below that at 116.65 (10-DMA).