Forex: USD/JPY breaks lower; round 80.00 eyed

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Forex: USD/JPY breaks lower; round 80.00 eyed

FITITOL--> FXstreet.com (Barcelona) - Despite the Bank of Japan expanded its QE program by JPY5trn to JPY70trn last Friday in Asia, an outcome in line with expectations, the measure seems to have underwhelmed the market, which continues to buy the Yen ignoring the recent aggressive monetary easing.

Last Friday's price formation on low timframes was a foretold clue that the Yen may enjoy further strength going forward, after those playing the news on the short side were badly squeezed once market digesting the news, concluding that the latest moderate increase in asset purchases by the BoJ would not be enough to turn the bearish tide around.

USD/JPY has now burst through last Friday's low at 80.20, dragging the sport exchange to its cheapest level since February 28, currently quoted at 80.10, session lows. On the downside, round 80.00 provides immediate support ahead of 79.85 (Feb 20 high) ahead of 79.50 (post-intervention high). On the upside,former support at 80.20/25 to act a s resistance now ahead of 80.50/55, where sellers are expected to line up.