Yen was already rallying ahead of BoJ policy decision, and managed to maintain most of its advances, despite some post-announcement jitters. Initial reactions saw some gains pared back as the policy appeared largely unchanged on the surface. However, some key alterations, including the central bank's decision to buy 10-year JGB yields at 1% in fixed-rate operations, up from previous rate of 0.5%, caught investors' attention. Additionally, BoJ's pledge to conduct yield curve control with "greater flexibility" and to "nimbly respond" to both upside and downside risks was noted. Collectively, these moves signal a shift towards an exit from BoJ's long-standing ultra-loose monetary policy. Following Yen, Dollar holds the position of the week's second strongest currency so far, as it seeks to build on the rally prompted by yesterday's better than expected GDP data. Market participants will now be looking towards today's PCE inflation data for cues on Dollar's next move. Meanwhile, Canadian Dollar is the third strongest for the week, awaiting Canadian GDP data. In stark contrast, Euro is the worst performer, still reeling from the sell-off after yesterday's ECB announcement. Australian Dollar trails as the next weakest, followed by British Pound. Technically, as a follow up on AUD/JPY, it's now the second top mover for the week so far. The strong break of 93.22 support formed resumed of the fall from 97.66. Further decline is now expected as long as 94.19 minor resistance holds. Next target is 100% projection of 97.66 to 93.22 from 95.84 at 91.40. Some support could be seen there to bring recovery. But decisive break of 91.40 will pave they way to 161.8% projection at 88.65 rather quickly. In Asia, at the time of writing, Nikkei is down -1.46%. Hong Kong HSI is up 1.08%. China Shanghai SSE is up 1.66%. Singapore Strait Times is up 0.93%. Japan 10-year JGB yield is up 0.104 at 0.545, hitting the highest level since 2014. Overnight, DOW dropped -0.67%. S&P 500 dropped -0.64%. NASDAQ dropped -0.55%. 10-year yield rose 0.161 to 4.012, back above 4% level. |
