USDJPY – sharply up, due to Bank of Japan interest rates cut

Previous analysis in which I indicated possibility of further BoJ policy easing and USDJPY gains, was very profitable. I wrote: “USDJPY reached to first important resistance at 118.80 and rebound occurred. If demand breaks above that resistance next targets will be at: 120.60, 121.40, 123.50”. So it happened after BoJ decided to adopt negative interest rates. During 10 minutes period, USDJPY moved sharply to 121.40 level.

Currently upward movement should continue. You have to note that at the chart there is a reversal head and shoulders pattern – it possible target can be found near 121.75. However earlier demand will have to break above resistance at 121.47. After that next important resistance is at 122.51. If correction occurs earlier, falls will protect support at 120.50.

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