USD/JPY up against a wall of resistance ahead of BoJ

• USD/JPY is struggling to extend deeper into supply territory ahead of the BoJ.
• USD taking a break as US yields hold back from fresh highs. 

The US dollar outperformed. The DXY climbed from a low of 91.3010 to a high of 91.9040 on the day. 

It is confirmed that the Fed will still need to see 'substantial further progress' before 'thinking about thinking' about a taper that doesn't bode well for investment flows into gold in the near-term.

US yields rose and the treasury curve steepened following the FOMC meeting, as Chair Powell indicated that the Fed is committed to keep short term interest rates low despite growth and inflation forecasts.

We saw a high of 1.7540% in the 10-year Treasury yield following an initial run in London trade, climbing above 1.70% for the first time since Jan. 24, 2020. 

There was then a follow-through at the start of New York trade before they started to drift lower into late Wall Street, dropping back to 1.7150% by the bell.

The 2-year government bond yields climbed 3bps from 0.13% to 0.16%.

Meanwhile, the Bank of Japan announces its policy decision and there is no fixed time as usual.

''The usually well-connected Nikkei News yesterday claimed that the BoJ would widen the yield tolerance band on its 10-year bond target to -0.25% to +0.25% and make other alterations such as switching to ad hoc equity ETF purchases rather than a fixed annual target, all part of a long-running major review into the bank’s policy approach,'' analysts at Westpac explained.