The USD/JPY was one of the bigger movers in trading yesterday. And for the most part, it was the JPY that was the key contributor.

The BOJ has trimmed their asset purchases and this rallied the JPY. As a result, the USD/JPY tumbled and we broke out of the trading range that has been in place since early December.

Key Support Levels

112.00 was the previous support level that had been in place during that time. It had been tested on three previous occasions and held up well.

However, thanks to the BOJ it basically didn’t fire a shot. Price slid straight on through and we are now clearly targeting the next level below. Looking at the 240 min chart, we can see that price has pulled back a touch and there are some bullish candles.

This might give us an opportunity to sell on any further drift higher. Any USD weakness will almost certainly send us tanking into 111.00.