2018.04.2701:56:00UTC+00Yen Muted After BoJ Holds Monetary Policy

The Japanese yen showed muted trading against its major counterparts in the Asian session on Friday, after the Bank of Japan kept its monetary stimulus unchanged as widely expected.

Governor Haruhiko Kuroda and his board members decided by an 8-1 majority vote to hold its target of raising the amount of outstanding JGB holdings at an annual pace of about JPY 80 trillion.

The bank will purchase government bonds so that the yield of 10-year JGBs will remain at around zero percent.

The board also decided to maintain the -0.1 percent interest rate on current accounts that financial institutions maintain at the bank.

Data from the Ministry of Economy, Trade and Industry showed that Japan industrial output gained 1.2 percent on month in March.

That topped forecasts for an increase of 0.5 percent following the 2.0 percent gain in February.

Meanwhile, Asian stocks were higher, following strong close on Wall Street overnight on upbeat earnings results from some of the biggest U.S. companies and a pullback by Treasury yields. Investors also cheered the start of a historic summit between the leaders of South and North Korea.

The yen climbed against its major rivals on Thursday.

The yen rose to 109.15 against the greenback, from a low of 109.35 hit at 6:45 pm ET. The next possible resistance for the yen is seen around the 108.00 area.

The yen climbed to a 3-day high of 151.95 against the pound and a 4-day high of 110.34 against the franc, coming off from its early lows of 152.19 and 110.56, respectively. If the yen rises further, it may find resistance around 150.00 against the pound and 108.00 against the franc.

The yen advanced to a 4-day high of 132.16 against the euro before holding steady. The pair was worth 132.29 when it closed deals on Thursday. The yen is likely to find resistance around the 130.00 level.

The yen strengthened to a 2-day high of 84.79 against the loonie, more than 2-week high of 82.38 against the aussie and more than a 3-week high of 77.07 against the kiwi, from its early lows of 84.95, 82.63 and 77.25, respectively. Thereafter, it held steady in subsequent part of the trading session. The yen is seen finding resistance around 82.5 against the loonie, 81.00 against the aussie and 76.00 against the kiwi.

Looking ahead, German import price index for March and U.K. Nationwide house prices for April are due in the pre-European session.

German jobless rate for April, U.K. advanced GDP data for the first quarter and Eurozone economic confidence index for April are set for release in the European session.

In the New York session, U.S. advanced GDP data for the first quarter and University of Michigan's final consumer sentiment index for April will be out.

At 10:00 am ET, the Bank of England Governor Mark Carney speaks at the launch of the BOE's econoME education program in London.