USD/JPY has reached the 77.04 low, hitting the 19 weeks low. As the currency pair is getting closer and closer to the 76.25 low (March 19th, 2011), the BOJ has stepped up the speculations of a “solo intervention” to weaken the Yen. Don’t expect the U.S or the EU to coordinate with the BOJ an “international” intervention, since they are facing their own economic dilemmas.

USD/JPY reached the 81.20 high yesterday and today, it’s slightly trading to the downside. Intraday bias remains on the downside, as long as the 82.78 minor resistance line is not broken. On the upside, if the 82.78 minor resistance line is broken it will change the sentiment to the bullish side and target the 85.50 major resistance line.

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.

The U.S. Dollar is strengthening this morning after the Bank of Japan decided to invoke an emergency easing plan. The BoJ avoided an intervention but instead decided to provide liquidity in an attempt to weaken its currency. The plan includes expanding its current 20 trillion Yen quantitative easing program to six-months from its current three-month time frame.