Global macro overview for 28/04/2016:
The Bank of Japan kept the interest rates unchanged at the level of -0,1% and held off on expanding monetary stimulus. During the press conference, BoJ Governor Haruhiko Kuroda said they need more time to assess the impact of negative interest rates on the Japanese economy. This is why the policy makers left unchanged three key easing tools: the 80 trillion yen target for expanding the monetary base through government-bond purchases, the 0.1% negative rate, and a program to buy riskier assets, including stocks. In conclusion, the BoJ's behavior is very similar to the recent Fed's actions as they as well prefer the "wait-and-see" approach before making new important decisions.
Let's now take a look at the USD/JPY technical picture in the 4H time frame. The BoJ's decision has provoked a sell-off in this market, and now bears are approaching very important support at the level of 107.62. A break out below this level would mean that bears are full in control over this market. In that case, the next support is seen at the level of 105.15.
