Japan's central bank maintained its policy stance. Japan will continue to ease in order to achieve the inflation rate at 2%. They extended and doubled the size of its bank lending. Under the growth support facility, the central bank's maximum provision of funds was doubled to 7 trillion yen from 3.5 trillion yen. They doubled the country's monetary base by an annual 60-70 trillion yen per year through the purchase of the Japanese government bonds, exchange traded funds and real estate investment trusts along with commercial papers and corporate bonds. These changes can attract new short-yen positions.
In the currency front, USD/JPY is trading at the level of 102.27 in Asia's trading session. In the hourly chart the RSI gives negative indication, but the price is holding the 40 DEMA. If the pair breaks 102.23, we can expect downfall towards 101.88,101.75, and 101.40. Just now it has broken the 102.23 level and is heading towards the downside targets.
Intraday-
S1 102.23 R1 102.308
S2 101.88 R2 102.42
S3 101.75 R3 102.60
If the price sustains above 102.42, it can fly up to 103.40.
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