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USD/JPY hits the roof on surprise BOJ easing

FXStreet (Moscow) - USD/JPY  jumped to 110.28 on the back of unexpected BOJ monetary policy decision; it is currently trading at 110.28 from 109.39 registered right before the news hit the wires.

USD/JPY is reacting vigorously to BOJ monetary policy decision. Few people in the financial universe believed that the Bank of Japan would expand its asset purchase program during this October meeting. Well, the Bank surprised them. The interest rate was left unchanged, while the bond buying program increased up to 80 trln. annually. The policy-makers promised to expand the period of JGB holdings to 10 years, though the vote was not unanious The pair broke above 110.00 and triggered stops clustered above this pivot. Technically, it means that the upside may be extended towards the next area of large stops at 110.50.

What are today’s key USD/JPY levels?

Today's central pivot point can be found at 109.15; initial support levels at 108.81, 108.41 and 108.08 with resistance above at 109.55, 109.88 and 110.28. Hourly Moving Averages are bullish, with the 200SMA bullish at 107.85 and the daily 20EMA bullish at 107.87. Hourly RSI is bullish at 64.

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