The BOJ announced today that it would keep its monetary policy on hold as they have garnered confidence that the third largest economy can withstand the recent sales tax hike.
While many expect the economy to contract in the 2nd quarter due to the consumer spending hangover after the increase in the sales tax,
Following the press conference the Yen strengthened against the US Dollar, causing USD/JPY to fall to a 6 month low of 100.84. The pair had fallen by more than 40 pips since the start of Kuroda's speech. DailyFX Chief Strategist John Kicklighter has suggested that fading hopes for further easing from the BOJ may lead the Yen to strengthen further (leading to a weakening for Yen pairs). Buyers may look to support the pair at the 100.87 mark which forms a Fibonacci Expansion level.
Source: FXCM MarketScope