USD/JPY hangs near session lows, just above mid-109.00s

• USD/JPY remained capped below the 109.70-75 supply zone.
• BoJ maintained status-quo and failed to provide any impetus.

The USD/JPY pair failed to capitalize on its early uptick and is currently placed near the lower end of its daily trading range, just above mid-109.00s.

The pair continued with its struggle to make it through the 109.70-75 region – multi-month tops set earlier this December – and seemed rather unimpressed by the latest Bank of Japan (BoJ) monetary policy decision on Thursday.

Moves little post-BoJ amid subdued USD demand

The central bank kept the short-term interest rate and the 10-year yield target unchanged at -0.1% and 0%, respectively. The BoJ reiterated its forward guidance, saying that rates will remain at current or lower levels for a prolonged time.

In the accompanying policy statement, the Japanese central bank mentioned that there was a chance of losing price momentum and showed readiness to ease further, if required, albeit did little to provide any meaningful impetus.

Meanwhile, the US dollar bulls remained on the defensive after the US House of Representatives on Wednesday voted to impeach the US President Donald Trump, which seemed to be the only factor keeping a lid on any upside for the major.

This coupled with the prevalent cautious mood, reinforced by a softer tone surrounding the US Treasury bond yields, underpinned the Japanese yen's perceived safe-haven status and further collaborated towards capping any gains.

Moving ahead, market participants now look forward to some second-tier US economic releases, due later during the early North-American session, for some short-term trading opportunities.

Technical levels to watch