USDJPY INTRADAY BEARISH BELOW 112.88

The U.S dollar has fallen sharply against the Japanese yen, after the Bank of Japan announced it would start to taper some of its JGB purchases in the bond market. The USDJPY pair quickly fell on the news, moving towards the 112.50 support level, with price-action now consolidating around the 112.60 region. Going forward, sellers retain control of the pair while price trades below the Monday low, found at 112.88. Today’s shock announcement from the BOJ, and the release of the U.S JOLT’S job opening report will likely set the intraday tone for USDJPY traders.

• Further downside is expected while price-action trades below the key 112.88 technical level, sellers will look for multiple higher time-frame price closes below the 112.70, to encourage further losses towards 112.30 and 112.03.

• Should the USDJPY pair start to trade above the 112.89 level, the 113.10 technical level remains the pivotal upside resistance point.