The Bank of Japan changed the focus of its monetary policy, targeting the yield curve while becoming less strict regarding the inflation target, JGB buying, and other measures.
The interest remains at -0.1%, unchanged. They show more flexibility but focus on the yield curve: they do not want it to flatten. Regarding ETF purchases, they will focus on Topix-tracking ETFs, resulting in a positive move in the Topix stock index.
The level of QE is more flexible and they loosened previous buying restrictions.
When stock markets rise, USD/JPY usually follows. USD/JPY reacts with a rise to 102.70. The move to the upside is contrary to forecasts released; that saw a win-win event for the Japanese currency. However, things can change later on. The high so far is 102.78.
The next line of resistance awaits at 103.40, followed by 104.20. Support awaits at 101, followed by the round level of 100.