Yen crossed the psychological level of 123 after marking a high of 122.40 levels. Bank of Japan Governor Kuroda in the current month reiterated that there is least possibility that Yen will weaken further. This statement helped Yen to appreciate against Dollar. Later, one of the policy maker said that market has misinterpreted Kuroda comments which resumed the downtrend for Yen. In the latest BOJ policy meeting, the central bank decided to hold its benchmark lending rate steady at 0.10 percent, while also maintaining its target of raising the monetary base at an annual pace of about JPY 80 trillion. The recent down move in Yen was also due to Dollar strength. Dollar index which was quoting near 93 levels climbed above 95 on the back of upbeat economic data. It seems that Dollar index will continue to move in a positive direction on the hopes that FED will lift the interest rate later this year. Dollar index will strengthen against its rivals which will pressure Yen in coming months. Technically speaking, USDJPY is in a strong bull trend and any minor dip is an opportunity to buy. On a smaller time frame, it is moving in a thin range of 122-125 levels. Currently it is hovering near 124 levels, a decisive move above 125 will open further positive possibility for this pair which can push prices higher till 128 levels. However, move below 121.70 will negate the above mentioned level
