USDJPY News by Allie Longford on 06:07 Octuber 31, 2014 EST
The Bank of Japan announced earlier this morning additional measures to its ongoing expansionary policies.
Among them it will increase the monetary base to 80 trillion yens, additional JGB purchases to top 30 trillion, expand by three fold the purchase of ETF and JREITS and extend the holding of its existing JGB to sometime between 7 to 10 years.
Keynesian nirvana. In the end, this all translates to more money in circulation and the devaluing of its currency aiming for inflation. Naturally, those that want to preserve their wealth will try to put their cash into something that will counteract these policies, being stocks one of those natural places where to park it.
Nikkei went up by almost 5% and the yen got absolutely smashed with USDJPY fast approaching the 112 mark and EURJPY above 140.
We have not written many technical analysis for USDJPY but we titled the very first one "Don't oppose the beast" and we pointed the temporary strength of the yen was most likely a correction.