USD/JPY (current price: 108.78)
The Japanese Yen got lower yesterday as we expected but the extent of the move was surprising, following the announcement by the BOJ. The pair remains deeply in oversold territory following the strong downtrend that started back in November. Short-term resistance is at 110 and 11 with the 200-day MA still being way above the current price at 117.25. Support is found near 107.5 and around the recent low at 105.5. Traders will likely focus on technical levels this week, given the lack of crucial economic announcements.
Our assessment: USD/JPY has recovered some of the losses that it suffered following the disappointing BOJ meeting, and after yesterday announcement the continuation of the bounce is more realistic.
