ForexLive European FX news wrap: Yen slides after historic BOJ move | Forexlive

This is one for the history books as the BOJ puts an end to negative rates and decides to scrap its yield curve control policy in the process. But after all the leaks since last week, the announcement was pretty numbing and it showed in the price action for the Japanese yen.

It was a sell the fact play as the yen slid after the decision and stayed under pressure in the aftermath. That is not to mention a lack of firm guidance on any further normalisation process by the BOJ. Ueda went as far to say that he wouldn’t label the move today as being part of that.

USD/JPY moved up from 149.30 to 149.80 initially before finding more bids to run up above the 150.00 mark. The high extended to 150.70 and that is just below the February highs of 150.84-88. The yen is the laggard across the board as it also slumped heavily against the euro, pound, and franc.

The dollar was slightly more bid as a result during the session. EUR/USD is down 0.2% to 1.0848 and just off its earlier low of 1.0835 on the day. The pair itself is running into some key support levels on the daily chart, so that is one to watch going into the Fed tomorrow.

Besides that, the RBA also took a more dovish step and the aussie stumbled as well in the aftermath. AUD/USD is keeping at the lows, down 0.6% to 0.6515 and closing in on a test of the 0.6500 mark next. NZD/USD is dragged down as well alongside it, lower by 0.5% to 0.6050 currently.

In the equities space, stocks are struggling after yesterday’s late retreat in Wall Street. Investors are getting a little nervous before the Fed tomorrow as S&P 500 futures are now down 0.4% on the day. Tech shares are leading the decline as Nasdaq futures are down 0.6%.