The Japanese yen faced significant downward pressure, tumbling to a four-month low, even as the Bank of Japan announced the end of its negative interest rate policy and quantitative easing measures. Market participants, having already factored in the policy change, engaged in profit-taking, leading to a sharp decline of over 1% in the yen's value. However, the possibility of further monetary policy tightening by the BOJ in response to persistent high inflation could offer support to the yen in the future, warranting continued vigilance among investors for trading cues.
USD/JPY is trading higher following the prior breakout above the previous resistance level. Suggesting the pair might enter overbought territory.