The BOJ kept policy unchanged. The bank will continue with the qualitative monetary easing, aiming to achieve the price stability target of 2%. In yesterday's session the pair dropped and closed below 20Dsma. In today's session ahead of the FOMC meeting minutes the pair is supported by buying at lower levels and facing strong resistance at 108.55. Today, as of now the pair made a low at 107.76, the 23.6 fib level in the weekly chart and pulled from the lows. We can expect fresh up move only above 20Dsma, at 108.55 levels. On the down side, if the pair again breaks below 107.76, it can extend its fall to 107.39, 107.10 and 106.80 levels.

For an hourly trading perspective, the momentum oscillators indicating pull back will take place. The prices are closed and trading below 12ema and 35DEMA. We recommend fresh buying above 108.44, targets are at 108.60, 108.75 and 109.00. In case if the pair manages to trade above 34hrsma at 109.0, strong buying will take place towards 109.25 and 109.45 levels. In the h4 chart, for the first time we can see lower high and lower low swings after a couple of months. The pair has support near 108.0 and 107.75.

Trade-

Buying above 108.44, safe buying above 108.60