Japan is expanding its lending program

The Bank of Japan is expanding its special lending program to 110 trillion yen from 75 trillion yen.

Japan flag

This morning, the Bank of Japan kept its benchmark rate unchanged at -0.10% as expected, while expanding its special lending program to 110 trillion yen from 75 trillion yen.

From a technical point of view, on a daily chart, USD/JPY is under pressure and now stands below its 50-day moving average (in blue). Readers may therefore consider the potential for further weakness below June top at 109.65 as the nearest support would be set at May bottom at 106.00 and a second one would be set at horizontal support at 105.15 in extension. Any rebound above 109.65 would lower the bearish potential and would lead to a rise towards strong horizontal resistance at 111.20.

Source: TradingView, GAIN Capital

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