USD/JPY: Looking to build medium-term shorts into 50% retracement level at 111.65

The market was certainly taken by surprise by the BOJ’s additional easing but a closer look at the fine print may suggest that this is not such a big deal (robbing Peter to pay Paul so to speak).

I will try fading the rally into the medium-term technical resistance level at 111.65 (50% 147.50/75.50). This is a very big level and not to be ignored.