The Japanese Yen rallied today as the BOJ didn’t act to increase its monetary stimulus as some had thought. USD/JPY broke out on upside yesterday on speculation that the qe package would be ramped up to deal with inflation being well below target. But USD/JPY fell back to 117 overnight as the BOJ kept the existing plan. This putting the upward breakout in question.
On the daily chart the downtrend remains convincing:
JPY is one of the few currency rising against the dollar right now. Yen is going to be supported because the cheaper oil will eventually be a huge benefit to the Japan economy that imports nearly all of their energy supply. Exports also benefit because Yen is so weak now so that will be an upward influence in the future.