The U.S. Dollar is strengthening this morning after the Bank of Japan decided to invoke an emergency easing plan. The BoJ avoided an intervention but instead decided to provide liquidity in an attempt to weaken its currency. The plan includes expanding its current 20 trillion Yen quantitative easing program to six-months from its current three-month time frame. It also increased the amount of funds available by 10 trillion Yen.

Forex traders reacted to this plan by purchasing the Dollar against most major currencies in what can best be described as a flight-to-safety rally.

Technically, after an attempt to breakout to the upside through the last swing top at 85.91, the USD JPY is now trading sharply lower. The last main bottom at 83.59 seems safe at this time, but could be challenged later in the day if 84.75 cannot hold today’s break.