The markets asked and the BOJ certainly delivered, just not on the side of the positioning that was leading up to the policy decision. I warned about the risks earlier in the week here. However, from a technical perspective, the 2% drop in the yen across the board today still does not invalidate the bearish trend since the latter stages of last year yet.
The dollar is sitting more mixed on the day but there are other factors in play. The yen is influenced by the BOJ while the euro was knocked down yesterday amid reports on the ECB perhaps looking to be less aggressive in the months ahead.
The aussie is looking perky with AUD/USD running up against the 0.7000 handle again with broader market sentiment holding up. US stocks are eyeing a technical breakout despite yesterday's slight retreat:
That remains a key chart to watch, especially as we look towards key data later today in the form of US retail sales and PPI figures. If the data vindicates a better risk mood, we could see the S&P 500 run up towards 4,100 next at least for starters.
What are your views on the market right now? Share your thoughts/ideas with the ForexLive community here.
