USD/YEN Looks Vulnerable to Another Breach of 100-99 in Reaction to Whatever the Bank of Japan Decides to Do, or Not Do

Heading into Wednesday's BOJ Meeting, and given that the airwaves have been burning with stories about Japanese authorities considering an intensification of QE and a press towards more negative interest rates, the position of USD/YEN suggests strongly either that the efficacy of such a policy prescription will fail if attempted, or that BOJ will back away from "easier money" for the time being.

As we speak, USD/YEN remains within the confines of its 2016 down-channel, and appears poised for continuation of the dominant downtrend, towards a test of the May-Aug low-zone at 99.50/00.

If 99.00 is violated, USD/YEN will project to a next downside target zone at 95.60/20.

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