FXstreet.com (Barcelona) - Earlier this morning during Asian trading, the Bank of Japan surprised the market by announcing another round of easing – and a fairly substantial one at that. The lifetime of the Asset Purchase Program was extended by 6-months and its size was increased by JPY 10 trn. The increase is to be evenly split between JGBs and T-bills, and the BoJ now hopes to hit the new higher APP target of JPY 80 trn by end-2013.
Given these ramifications, the USD/JPY has been one of the days more traded pairs thus far, peaking at an intraday maximum of 79.23, before consolidating back towards the 79.00 level, a region it is testing presently. Having notched a gain of +0.22% above it’s opening, Slobodan Drvenica, an analyst at Windsor Brokers Ltd. posits the next resistance as 79.21, 79.50, and finally 79.50. Should the consolidation movement continue unabated, supports will eventually activate at 78.90, 78.55, then 78.23.
Given these ramifications, the USD/JPY has been one of the days more traded pairs thus far, peaking at an intraday maximum of 79.23, before consolidating back towards the 79.00 level, a region it is testing presently. Having notched a gain of +0.22% above it’s opening, Slobodan Drvenica, an analyst at Windsor Brokers Ltd. posits the next resistance as 79.21, 79.50, and finally 79.50. Should the consolidation movement continue unabated, supports will eventually activate at 78.90, 78.55, then 78.23.
