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Forex: USD/JPY holding at 95.47/48

FXstreet.com (Barcelona) - The USD/JPY rocketed upwards earlier this morning following news of the BoJ policy decision during overnight trading. Having catapulted its way above the 95.00 level, the cross has now been trading sideways during European trading, settling at 95.47/48 in these moments.

At this juncture the cross is operating at a stellar +2.57% above its opening. ICN.com analysts identify corrective measures of resistance 95.75, then 96.10, and finally the 96.70 handle. Conversely, supports for the USD/JPY will initiate at 95.00 onto 94.85 and ultimately 94.50.

According to the ICN.com Technical Analyst Team, “The USD/JPY extended the upside move and is trading now above key support level of the upside move which might extend negativity. Trading now above 95.00 is positive and might extend the bullish move.”

Earlier today, the Bank of Japan, under its new leadership, took a bolder than expected step into the realm of aggressive easing overnight. In essence, itt switched to a new monetary policy framework and is now targeting the monetary base rather than the overnight call rate. This takes policy back to how it looked during the QE experiment of 2001-2006 when the level of current account balances at the BoJ became the policy target.

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