Forex: USD/JPY upside stable at 95.50 ahead of US money

FXstreet.com (Barcelona) - After the rally from just below 93.00 to 95.67 high on the surprising announcement of the BoJ decision, surpassing the already high expectations, the USD/JPY is stabilizing around 95.50, +2.60% on the day.

In regard to the BoJ aggressive action in order to target 2% inflation, BTMU analyst Derek Halpenny said that with the BOJ now buying out to 40 years there is a high risk that the financial markets will start to conclude that the BOJ is moving toward debt monetization. Kit Juckes, Global Head of Currency Strategy at Societe Generale, is surprised with what looks like a 100% increase in bond boosting, instead of the expected 50%. “This is the kind of aggressive easing we are used to seeing from the Fed and would just love to see more of from the ECB...”, he continued, but not sure if the BoJ will manage to deliver the 2% inflation on 2 year time scale.

“The recent break through 83.85 resistance signals that a bottom is in place at 92.54 and the whole corrective slide from 96.70 is already over”, wrote Deltastock.com analyst Stoyan Mihaylov, bullish biased and targeting 96.70 high with an initial support at 94.85, followed by the break-out area at 93.85.