USD/JPY languishes presently down around 79.40, having seen a sharp sell-off (as low as 79.27) in the wake of the BOJ move to increase the asset buying and lending programme by 11 trln to 91 trln.
You can look at this price action either of two ways. It’s either a classic buy the rumour, sell the fact price action (an increase of 10 trln had been well flagged up by the Japanese media beforehand.) Or you can take the USD/JPY sell-off as a reflection of disappointment that the increase hadn’t been even more than 11 trln (some greedy bastards having been looking for upwards of 20 trln)
Personally I’d go with the former. The danger for the USD/JPY bulls was always that 10 trln had been well discounted.
From here, talk of buy orders clustered 79.00/20.
