Forex: USD/JPY reaction muted after BoJ policy kept on hold

FXstreet.com (San Francisco) - The USDJPY saw muted reaction as the Bank of Japan keeps interest rates and its easing program unchanged, with monthly government bond purchases at 1.8 Trillion yen. "The Bank of Japan's inability to really move forward (or backwards) with any monetary policy at this moment should shock the USDJPY exchange rate lower in the short term," comments Richard Lee, FX analyst at FXstreet.com. "Based on near term profit taking and lowered expectations leading up to the actual announcement, a shallow retracement to support at 80 isn't all to unrealistic for the major pair."

USDJPY dipped to an intraday low of 81.13 upon release, finding support at the 50-hr EMA, but now trades back around the 81.20 mark.