Bank of Japan just released the Monetary Policy Statement.
As expected, no change in QE, which disappointed the market. As a result of that (again, as expected) Yen became stronger, meaning USDJPY dropped 50 pips.
YEN may continue to be very unstable during Asian hours, as 2 more events are coming up.
a) Kuroda’s Press Conference
b) Kozo Yamamoto (self-claiming! Abenomics’ Architect) may talk in front of the press
(About Kozo Yamamoto – http://www.reuters.com/article/2015/09/11/uk-japan-economy-boj-idUKKCN0RB0U620150911 )
Kuroda’s press conference may disappoint the market again, in which case USDJPY may drop again.
On the other hand, Yamamoto believes BOJ should announce the additional QE at the next Monetary Policy meeting (Oct 30). If he speaks up, USDJPY should jump up.
So anything could happen until London Open. Please be careful.
FYI, Daily Ichimoku looks like below.
Candles are really blocked by the clouds. So until the candle goes above the cloud, I cannot become Bull with this pair.
However, you should also remember 118.00 is a hardcore support, as there is a thick Cloud sitting there on Weekly Ichimoku.
Good news is… by the time London opens, we will see the trend.
Hope this posting helps you analyze YEN pairs.
YJ Baik – Forex.Today @ Tokyo