USD/JPY is in the midst of its worst session in eight months.
The BOJ took some unusual steps today but it was far short of unlimited immediate bond purchases, cutting the floor on interest or excess reserves or buying foreign securities.
The best thing you can say about it is that it leaves room for a new governor to take bond action when he takes over in May.
In the near term, that leaves yen crosses without a catalyst to move higher. If I look at it from the perspective of a Japanese exporter, I would be rushing to hedge at these levels.
Technically, the 88.00/87.79 level will be critical. I break below that and we could see a correction all the way to the 55-day moving average around 85.00.
