The dollar is mixed Wednesday, giving up ground on the dollar and gaining on the yen as the BOJ exceeds market easing expectations. Dollar-yen was last trading at Y79.15, just shy of the session high Y79.19, having spiked higher in the wake of the BOJ’s latest round of easing. The pair had been trading around Y78.60 into the BOJ announcement, before spiking higher on buying from both real money and hot money names. Stops were taken out at Y78.80 and Y79.00/05 on the spike higher. Traders note offers above now at Y79.30 from exporters – a level that ties in with the pair’s 200-day MA. The yen also fell sharply against the euro in the wake of the BOJ move, with euro-yen touching a session high at Y103.53. Offers are seen building at Y103.75/80 and again just above Y104.00. The Bank of Japan’s policy board on Wednesday voted unanimously to jack up the target of its financial asset-buying program to Y80 trillion from Y70 trillion, citing further global economic slowdown.
EasyForexNews Research Team