FXstreet.com (Barcelona) - After trading as high as 99.04 earlier in the session, the USD/JPY has now surrendered all gains and is down 88 pips at 97.90. The sharp drop occurred just after the Bank of Japan announced it would leave its funding rate unchanged (although this move was widely expected by most).

Initial resistance now sits at 98.50 (previous support on 1 hour chart), followed by 99.11 (the 9dma). Initial support sits at 97.83 (the 50dma on 1 hour chart), followed by 97.40 (previous resistance, now support on 1 hour chart). Both short term moving averages, as well as the RSI (14) remain in bearish set up on the daily chart which could continue fuel additional selling pressure.