USD/JPY Analysis: drops on BoJ announcement
|USD/JPY
The USD/JPY currency exchange rate plummeted at midnight GMT hours. The move was caused by the announcements made by the Bank of Japan. In detail look at the fundamental event is scheduled to be published in the Expert Commentary section on Wednesday.
In regards to the near term future, the pair has been trading between the support of the 200-hour SMA near 109.90 and the weekly pivot point at 110.00. As the SMA moves upwards, the rate would get squeezed.
A squeeze can end in two ways. The pair can break out to the upside or downside. In the case of a break out up, the pair would reach for the 100-hour SMA at 110.07. On the other hand, a break out down could reach for the weekly S1 simple pivot point at 109.71.
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