Forex: Yen crosses lacking upside catalyst post BoJ?

FXstreet.com (Barcelona) - The decision by the BoJ to adopt a 2% inflation goal in the near term, combined however, with failure to carry out immediate unlimited asset purchases, was less than meet the eye for those players aiming to add shorts into the Yen 'sellphoria'. As a consequence, the pair ends the day at its lowest in 3 days after its worst fall in 8 months, at 88.72 from 89.90.

Is there much potential left for upside runs? According to Adam Button, editor at Forexlive, in the near term, after the BoJ announcement, "it leaves yen crosses without a catalyst to move higher", adding that "if I look at it from the perspective of a Japanese exporter, I would be rushing to hedge at these levels."

Technically, Adam thinks that "the 88.00/87.79 level will be critical." A break below, "and we could see a correction all the way to the 55-day moving average around 85.00" Adam notes.

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