Markets are reacting strongly to the news that the BOJ may join the rest of the G7 central banks by cutting rates when it meets on Friday. USD/JPY overcame resistance at 96.96 a short while ago and launched as high as 97.32 thus far. The new yen weakness has filtered through to US equities and they now trade up better than 4%.
Next stop on the charts for USD/JPY is the 98.05 area where there is a top on the hourly charts and 98.30/40 where there is another hourly top as well as the 61.8% fibo retracement of the 103/90.90 decline.
With any luck, we will geta final hour stock surge as US shares lag their overseas counterparts today.
