For the first time since July 2017, the Bank of Japan carried out an unlimited purchase of 10-year bonds, thus reacting to a 0.1% rise in profitability following the global trend of debt sales. In its strategy, the Bank of Japan committed to making sure that the yields of 10-year-olds did not deviate too much from 0.0%. Thus, BoJ reminded everyone that he is still one of the most dovish central banks, so building the position to strengthen the yen, which we witnessed in January, is pointless. However, the pressure of abandoning the dollar was stronger and dominated the falls on USD / JPY. Now, however, trading on the dollar has calmed down a bit, it is more cautious and more limited, but it is not necessarily against it. This in combination with the BoJ action causes that the doubt appears in short positions in USD / JPY and it is quite possible that it will turn into a pressure to push the course up.
Let's now take a look at the USD/JPY technical picture at the H4 time frame. The market has retraced 50% of the previous swing down and is currently trading at the level of 109.84. Nevertheless, the key technical resistance is at the level of 110.32, which is close to the 61% Fibo at the level of 110.29. Only a sustained break out above this level would indicate a down trend reversal.
