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Session Recap: When money comes from Japan; EUR/USD at 14-month low, USD/JPY 7-year highs

FXStreet (San Francisco) - Big news today at 4:30 pm Tokyo time; 3:30 am time in New York: The Bank of Japan announced a surprising expansion of its monetary easing program from ¥60-70-trillion to a total of¥80-trillion annually. The market went wild; EUR/USD dropped to 14-month lows, USD/JPY and Nikkei climbed to nearly 7-year highs.

The BoJ also affected Wall Street that performed a new set of record closes to end October. Major indexes closed at all-time highs to end October with gains after a roller coaster month.

The EUR/USD fell for third day to new lows since August 2008 at 1.2485. The pair is finishing at 1.2525, down 0.69% on the day, having posted a daily high at 1.2618 and low at 1.2485. "The weekly chart shows indicators turned back south in oversold territory after limited corrections,· Valeria Bednarik from FXStreet comments. "While 20 SMA maintains a clear bearish slope well above current price, all of which supports the ongoing bearish strength."

According to the FXStreet Forecast EUR/USD Poll, bears rule the pair short and long term, with 1.3000 becoming now history, especially if pair manages to break below 1.2440, since there is not much in the way to 1.2370

USD/JPY jumped over 300 pips on Friday to break above 112.00 at highs since December 2007 around 112.50. The pair is closing at 112.35, up 2.87% on the day, having posted a daily high at 112.50 and low at 109.18.

The FXStreet Forecast USD/JPY Poll shows that market finally followed experts, with the pair still seen higher in term. The reason? The BoJ surprise overlaps forecasts.

So, What bank will be next? This week the Fed ended QE3 this week, BoJ added to QE this week while the ECB may enter QE in December.

A new set of record closes to end October

The US stocks market closed at all-time highs to end October with gains after a roller coaster month. Friday's big gains were fueled by the decision of the Bank of Japan to expand stimulus.
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