The BOJ’s two day meeting starts today and we can expect volatility in the Yen to increase as large flows hit a nervous market. USD/JPY was well held yesterday by large bids between 92.50/70 but the market is still long (albeit much reduced) and rallies are likely to meet with plenty of resistance.
I’m looking for a 92.70/93.70 range in USD/JPY and a 119.20/120.20 range in EUR/JPY, but will not be at all surprised if these levels are easily broken. I’m still running a short EUR/JPY trade but have locked in a healthy profit with a trailing stop now above 120.40 and a target at 117.50.