The Yen index continued to rise overnight as the markets absorbed news from the two day meeting of the Bank of Japan, with the general tone being one of disappointment, and the yen strengthening as a result. The BOJ adopted a ‘wait and see’ approach following the news earlier of government stimulus to support the weak economy in an attempt to drive some much needed inflation into the system. Following the release, the index has since risen strongly to touch an intra day high of 8989.83, and currently trading off this high at 8943.68 at the time of writing.
However, from a technical perspective the index is now running into some heavy congestion which extends from the current price point through to 9250, and whilst the markets may have reacted with a luke warm response to the proposed level of easing, this may not be sufficient to drive the index higher and through this area.
By Anna Coulling
Charts from NinjaTrader and indicators from Quantum Trading