USD/JPY's sell-off is likely to stop near the base of the weekly Ichimoku cloud at 107.66.
The pair has dropped over 3% in six days as traders react to massive drops in equity markets nL2N2AS06U.
The sell-off has been exacerbated by the fact that traders rushed to buy the pair for two days just ahead of the stock market's reverse.
That bullish phase probably led to a change in the mid-term range, which had been 105-110.
Judged by the huge buying since that range gave way, Japan is betting the range has risen, and Japanese investors will get a huge amount of new money to invest in April.
The range may shift closer to 107-112 or 108-113.
Near-certain changes in interest rates should matter less than the stimulus they will provide.
For USD/JPY, a narrowing in the US/Japan rate gap should have less impact than the support that stimulus provides for stocks and risk appetite, which should support USD/JPY.
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