The central bank of Japan (BOJ) kept interest rates unchanged at -0.10% as expected with a 10-year JGB bond yield target of between 0.5% to 1.0%.
The BOJ also increased flexibility on the Yield Curve Control (YCC) to support economic activity and increase wage rates.
The Yen experienced a significant decline in the Asian session this morning with the reaction to the BOJ meeting results.
Price movements can be observed on the chart of the USD/JPY currency pair which is starting to show a change in price direction.
At the opening trade of the beginning of the week yesterday, the price showed a lower decline to the level of 148.800 which continued the movement pattern at the end of last week.
However, the surge is showing again this morning until the price has broken through the important zone at 150.00.
A bullish signal is observed when the price surge has broken through the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the USD/JPY chart.
If the price increase continues to be driven to a higher level, it is expected that the high level reached last week will be the target to be touched again, which is at 150.780.
And it's not impossible for prices to continue moving higher, but investors will remain alert for any shocks to the Yen.
A further drop in price can be expected to occur with the price once again moving below the 150.00 level again.
A break below the MA50 support level would expect the previous bearish pattern to continue above the level reached earlier in the week.
