$USD/JPY & $102

I think this is going to be a key influence on intraday trade today, the Bank of Japan's doubling of their lending facilities definitely moved the pair overnight, even if it didn't do much for Europe or futures, however after the initial knee jerk reaction to what seems like monetary loosening, there are two factors, the first as Goldman was quick to get out this morning, "this move was already discounted", meaning expected and baked in to the price.

The second which may have longer lasting ramifications is the global liquidity semi-panic you can feel bubbling under the surface, or in other words, bracing for troubled waters.

I think a failure of $102 (and the pair almost made $103 on the BOJ announcement ) will not sit well with the market especially given the move was born of BOJ policy which in the not so distant past has had a VERY short half-life or effectiveness.

I think this pair will have a lot more to do with intraday trade in the averages today than most would think, if we slip under $102, I'm sure we'll know for sure if I'm correct.

This is what the 1 min USD/JPY looked like this morning, it is a fractal of last night's parabolic move that failed, just larger as it's based on Central bank policy. My first thought upon seeing it is, "Why has it lost momentum?" which is more of a rhetorical question given the BOJ's policy actions have had a very short effect on the market and with GS confirming that this "news" was already priced in, it makes sense that the pair lost momentum, now the question is, does it lose $102?

 To the left around 10:30 last night you see the parabolic move on the expansion of the lending facilities, but this morning the intraday chart for the pair didn't look so good and price itself didn't make a higher high, rather a lower one.

The 5 min USD/JPY shows the $102 level at the yellow trend-line, there's a pretty clear negative going in to that move which would make sense if smart money already discounted it as Goldman came out with this a.m.. The yellow arrows are the first smaller parabolic move and failure last night and this looks to be a larger one, the failures are typically just as spectacular as the initial move. That makes $102 very interesting for the broader market, I'd keep an eye on this as you make your rounds today.