Yesterday’s hype was the BoJ meeting where the central bank remained committed to an aggressive easing program as there were only slight tweaks to the monetary policy. The BoJ will not change its 0% target for long term rates and remains committed to low levels of rates for an extended period of time. Rumors spread that the bank is heading towards an increase in rates.
From the technical side, the USDJPY has broken through yesterday’s resistance of 111.40 and might move up to go past yesterday’s second resistance of 112.24 to reach today’s resistance of 112.45. After going up towards that resistance we believe it might go back down towards the 110.75 support which was the low of the post BoJ auction.
Support: 110.75 110.55
Resistance: 112.45 112.9