The pair is now up to 112.80 but encounters some key resistance levels
The BOJ earlier in the day announced that they would "taper" bond purchases - but in effect as I mentioned here, it's not a change to monetary policy at all (since the BOJ focuses on the YCC policy since its implementation in 2016).
USD/JPY fell to a low of 112.50 after the announcement, but has now clawed back some of the losses in a move back to 112.80.
Buyers stemmed the fall at the 38.2 retracement level, but now face a tougher test in the move higher. Looking at the hourly chart, there's a few key resistance points to break through right now.
The 200-hour MA sits at 112.79, while the 100-hour MA and 61.8 retracement level sits at 112.86. These levels would be key for buyers to break through if we are to see a move higher back to pre-BOJ announcement levels.
