/JPY: CE3 Currencies Lodge Cyclical Highs Versus Struggling Yen

All three CE3 currencies printed cyclical highs versus the Japanese Yen, which remains the worst G10 performer after a bleak overnight session headlined by a BoJ monetary policy decision. Japan's central bank dropped references to COVID-19 and interest rates from its forward guidance, setting the scene for more flexibility going forward. It also said that it will conduct a broad review of its monetary policy over the next 12-18 months, with Governor Kazuo Ueda noting that the costs of a premature normalisation would outweigh the costs of further delay.

• PLN/JPY soared as high as to Y32.6079 and last deals at Y32.5668, up 2,681 pips on the session. The Zloty came under some pressure after the release of below-forecast Polish CPI data, which inspired dovish NBP repricing. The next bullish target is provided by Feb 2, 2018 high of Y33.0823. It is worth noting though that the RSI is in overbought territory, which should see bears looking for signs of an imminent correction.
• CZK/JPY printed new 15-year highs as a result of Yen weakness, it last trades +597 pips at Y6.3533. The Koruna remains at a longer-term advantage due to the CNB's backstop against its depreciation. Bulls look for gains towards the round figure/Sep 22, 2008 high of Y6.5000/6.5482. Bears need a dip through Apr 25/21 lows of Y6.2209/08 to get some initial reprieve.
• HUF/JPY rallied to a session high of Y40.0450 and currently deals at Y39.8625, up 2,565 pips on the day. The intraday peak was the best level for the pair in four years and bulls look for a resumption of gains towards Mar 20, 2019 high of Y40.4940. Meanwhile, Apr 25 low of Y38.6774 represents the initial bearish target, Data earlier today showed that Hungary's unemployment rate stayed at 4.0% in March (median est. was 4.1%), yet the Forint marginally trails its EMEA peers.