after this news market switched to positive territory, but in the late trading sinked back.

expected 0.5% (already priced) or 0.25% drop in the key rate

GBPJPY sinked to 109.43 overnight taking out our stop on 110.80

There was no economic data in Japan today, although the head of the LDP panel on monetary policy (Kozo Yamamoto) remarked that the BoJ should “cut rates back to zero immediately” to forestall the recession risks that are also emerging in
Japan (his words).

So it will be interesting to see how currencies will move during recession in USA and expansion of JPY borrowed with 0%. It will make some influence to carrytraders.

it was unplanned meeting one week before planned one.

The Kiwi opened at 0.7850 in NY and targeted stops above 0.7870 to trade to highs of 0.7880. NZD/USD ignored initial US stock market losses but finally succumbed to the 200-pt plus fall in the DJIA, dropping back to 0.7825/30 into the afternoon. Issuance demand for NZD/USD continues with two new uridashis NZ$156 mln issued overnight, after NZ$400 mln in Euro-kiwi bonds were issued earlier this week. This has helped underpin NZD/USD with traders still eyeing a move to 0.8000 in coming sessions on the back of USD weakness. Offers remain near 0.7880/85 with stops tipped above and more sellers at 0.7900 and 0.7925. Bids are eyed at 0.7800/10.
Looking ahead, some solid domestic data is due for the Kiwi next week with the QVNZ house prices due on Monday with the release of building consents also scheduled. The Quarterly Survey of Business Opinion is due on Tuesday followed by CPI on Thursday and retail trade data on Friday. The data will indicate how well NZ is holding up in face of a global slowdown that has hit the US, the UK, Japan and the Eurozone.

carrytrade unwind pushed GBPJPY extreamly lower. Range trading is finished. Looking for short position from 215

at 215.50 stop 213.50 target 220

As Expected BOE Holds Repo Rate Unchanged At 5.50%

USD/JPY and JPY crosses looked to trade higher early but weakness on the TSE despite the late rally and surge on Wall Street overnight say most JPY pairs move lower during the course of the Asian day. USD/JPY fell from an early high of 110.10 to 109.63. Some light stops look to have been tripped on the break back below 109.75-85, resistance on the way up. The bias does look to remain to the topside however with stops seen especially heavy above 110.50, 110.41 being the base of the Ichimoku cloud. Much will depend on how the JPY crosses perform overnight, a function mostly of stock market moves these days. EUR/JPY dropped from 161.58 to 160.95, bouncing thereafter as stock rose from afternoon lows. Large stops are eyed here above 161.70, 161.68 the high on the 3rd. Highs since have been limited to just below this level. As is the case with other JPY crosses, Japanese retail investors continue dips to buy back in. AUD/JPY rose to 97.38 before moving down to 96.94. A large Japanese investment bank was seen taking profits on the early rise. NZD/JPY and GBP/JPY moved down from 85.24 to 84.88 and 215.65 to 214.63.