The Dollar/Yen declined in Asian trading overnight after getting an initial boost from what the Bank of Japan describes as a “comprehensive monetary easing”. Last night the BoJ unexpectedly cut its benchmark interest-rate range to between zero and 0.1% from 0.1%, and pledged to maintain its policy until prices stabilize. It also revealed it would implement a new asset-buying fund.

Equity futures markets are trading higher ahead of the U.S. opening after a mixed trade overnight. Asian markets finished higher, but Europe traded mostly lower. News that China’s trade surplus narrowed to $20 billion helped boost Asian equity markets.

The USD JPY is consolidating inside the retracement zone created by the 84.73 to 86.37 range. This zone is 85.55 to 85.35. If the market can form a support base then look for it to make a run at the swing top at 86.37. Not only will a breakout over this level turn the main trend to up on the daily chart, but it will also confirm last week’s weekly closing price reversal bottom.

U.S. Equity markets are under pressure this morning as sellers showed up after Japan reported a weak GDP figure. Treasury Bonds are trading higher in response to the possibility of a weaker global economy.