USD/JPY settles slightly higher after BOJ policy decision

The sell the fact play looks to be in motion but I reckon traders have had all week to prep for that already. We’ve gotten so many reports on the BOJ ending negative rates and scrapping its yield curve control policy that the announcement earlier felt rather numb. It’s a prudent approach by the Japanese central bank to control any outsized reaction in markets. But that means the reaction to the fact will not be as grand as many would hope it would be.

USD/JPY is now up around 149.60 levels after a slight whipsaw between 149.00 and 149.70 upon the announcement. The high extended to 149.90 before settling around the current area.

There’s not really much to comment as key resistance and offers lie closer to 150.00 at the moment. And given how much preparation that traders have gotten in anticipation of the event today, there isn’t any surprises to shake things up.

As mentioned yesterday, if the yen were to find any reason to rally much stronger, it is going to need more than just the BOJ.

This article was written by Justin Low at www.forexlive.com.