BREAKING: USDJPY trades the highest level in five years

USDJPY pair rose nearly 1.0% during today's session, hitting its highest levels since January 2017 as the dovish approach of the  Bank of Japan stands in contrast to the actions of other central banks. Despite rising inflation and geopolitical tensions caused by the Russian aggression on Ukraine, BoJ repeatedly stated that it will keep ultra-loose monetary policies to support the economic recovery and achieve its 2% inflation target. Policymakers will meet next week, however BOJ Governor Haruhiko Kuroda already ruled out the chance of withdrawing stimulus

Also the Federal Reserve meeting will take place next week and markets widely expect 25 basis points interest rates increase after another hot inflation report. Powell has reassured that  if inflation does not abate as anticipated, he opened the door for a more aggressive move. 

USDJPY pair moved sharply higher during today's session and broke above the psychological 117,00 level. Currently the pair is approaching the upper limit of the wedge formation. Should break higher occur, upward move may accelerate towards 118.70 level where December 2016 highs are located. Source: xStation5