Yen buying ramps up after Kuroda stomps on expectations
Stop me if you've heard this one before. Market gets excited as we approach a central bank meeting and starts throwing out all sorts of crazy ideas for action, then a central bank head comes out with a pin and starts popping those expectations.
And thus here is USDJPY down some 100 odd pips in minutes.
USDJPY H1 chart
106.25/30 looks to be where resistance could start building & 106.50, followed by 106.75/80, and then 107.00.
It's stimulus rumours galore in Japan from both Abe and the BOJ. There may well be a concerted effort from both to hit the economy but the question is how long that will last in any reactionary move in the yen? I tend to think not long. With the state of the global economy at the moment, action from Japan seems akin to pissing into the wind.