JadeFOREX

USD/JPY dropped away from a trendline resistance on Wednesday before the highly anticipated Consumer Price Index event on Thursday when a headline about the Bank of Japan, as reported by Japanese media Yomiuri, circulated the wires. The news signalled that the Japanese central bank is up for reviewing the side effects of massive monetary easing in the monetary policy meeting next week. “BOJ reviews due to skewed interest rates in markets even after last month’s tweak in bond yield control policy,” adds Yomiuri per Reuters. As a consequence, the yen moved higher sharply vs. the greenback and broke 130 and reached 129.60 ahead of the US CPI data which spurred the price lower to 127.45.