USD/JPY, back to the beginning after BOJ! What next!?
BOJ’s decision not to ease the monetary policy furder despite bad inflation data returned the pair sharply last night for almost 300 pips in a 3 minute sesion, 111.68 > 108.73. After the morning’s press conference, the pair has fall furder with low at 108.05 today and slightly recovered to 108.35 in these moments. As you can see, gain from the previous week is completely erased with this move. Nikkei 225 close the day with -3.61% loss after decision and this was ugly day for the stock market as well. It will be interesting to see how will things develop from here now!? In my point of view, 107.60 is place for the huge buyers and it will be very hard to brake this support. On the other hand, the sellers will try to use this moment of BOJ’s ‘weakness’ and try to push true the support. If the sellers manage to do that, 105 will be their next target.