-Yesterday, we saw positivity play out in the market going into the American session as markets downplayed the tensions in the Middle East and the US Dollar losing grounds. Australian Dollar gained the most against the Safe Havens especially against the US Dollar.

-The Bank of Japan (BOJ) monetary policy decision was the major agenda in the market today. The central bank announced an unchanged interest rate in line with expectations but committed to maintaining an Ultra-lose monetary policy- Dovish stance weakened the JPY across board.

-The US Dollar is a major beneficiary of the dovish BOJ policy today with the USDJPY pushing above 150.200, recouping all loses suffered yesterday as the pair dropped below 149.000. We could search for further upsides on the pair, but intervention risks and month-end flow a major concern.

-In FX, in line with a mixed market sentiment, major currencies are trading mostly mixed on the board with the US Dollar sitting at the top of the majors while the JPY sits at the opposite end as the weakest currency in the market.

Cumulative Strength: USD (0.20%)

Cumulative Weakness: JPY (-0.64%)

-USDJPY is up about 130 pips on the day with price running into resistance around 150.275. Pullback towards 150.00 could usher another upside into the pair but intervention risks by the BOJ is a major risk and therefore convictions are very low on this pair.

-The JPY crosses are also mostly higher as the JPY weakens, EURJPY is currently running into resistance around 159.300 – if prices fall back towards 159.00 then we could also look to buy this pair.

-Today marks the end of the trading month which means we might still see month-end flows come into play later during the day, we need to be extra careful while chasing moves and manage our risk appropriately.

-Looking ahead, Canadian GDP and US Consumer sentiment data are on the economic calendar later this afternoon while New Zealand’s labour report closes out the day later in the night.

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