Ella 
USD/JPY regained 150.00 as Bank of Japan (BOJ) Governor Kazuo Ueda issued dovish guidance on monetary policy. Bank of Japan Governor Kazuo Ueda said the central bank would not hesitate to take additional easing measures if needed to keep inflation above 2%.
In its monetary policy decision, the Bank of Japan kept interest rates unchanged at minus 0.1%, as expected by market participants. Japan’s economy is managing to keep inflation above 2%, but price pressures are largely driven by external factors. The Bank of Japan hopes to keep inflation comfortably above its 2% target through higher wage growth, for which continued expansionary policy stance will be necessary.
The Bank of Japan tweaked its yield curve control (YCC), redefining 1.0% as a “ceiling” to provide more room for flexibility. This will continue massive bond buying. Ueda Kazuo said that it is appropriate to increase the flexibility of YCC. Kazuo Ueda believes the central bank is getting closer to achieving its price target.
Meanwhile, market sentiment remains subdued amid rising Israeli-Palestinian tensions. S&P 500 futures fell during the Asian session ahead of the Federal Reserve’s (Fed) monetary policy decision. The Federal Reserve is expected to keep interest rates on hold at a range of 5.25-5.50% as consumer inflation continues to slow and long-term U.S. bond yields rise, effectively reinforcing the role of the central bank.
The U.S. Dollar Index (DXY) is facing selling pressure as it attempts to move higher above near-term resistance at 106.40 on expectations that the Federal Reserve will deliver a neutral decision but leave the door open to further tightening of interest rates.
