Massive slump in JPY seen as BoJ eases policy, surprising markets who has expected no major action.
- Adopts negative 0.1 pct interest for excess reserves financial institutions park with BOJ, reduces median core CPI forecast for 2016/17 to +0.8 pct from +1.4 pct projected in Oct.
- USD/JPY hit 121.39, extending gains after a knee-jerk 118.50 to 120.75 spike, the pair has eased slightly to currently trade at 120.37.
- The current momentum could see gains upto 122 levels which is also 78.6% Fib of 123.76 to 115.97 fall.
- Immediate support is seen by 5-DMA at 118.89, while on the upside next hurdle aligns at 121.50 (Dec 21 highs).
Recommendation: For trading purpose, we buy dips in the pair around 120.00, SL: 119, TP: 121.50/122
