The Bank of Japan held its benchmark interest rate at -0.10%. Some expected it to go further into negative territory. However, this doesn't mean the BoJ is done with future easing. In fact, it is still looking to expand the monetary base. There was not much guidance in terms of the specific. In general the BoJ is telling us it still has ammo left. Here's a summary from forexlive.com: Bank of Japan September monetary policy meeting announcement.Here's the official release from the Bank of Japan: New Framework for Strengthening Monetary Easing: "Quantitative and Qualitative Monetary Easing with Yield Curve Control."There is a whiplash reaction. At first the Japanese yen fell, but the market immediately faded it. Let's take a look at the USD/JPY 4H chart:(click to enlarge)Whippy action:- The USD/JPY has formed a range roughly between 101.40 and 103.00. - After the release of the BoJ statement, it first dipped, then shot up sharply. - However, a couple of hours later came a sharp U-turn, not only in USD/JPY but in other Japanese yen pairs as well.101 pivot:- At the moment, 101 is a key pivot.- The market showed that it was ready to buy at 101. However, if price falls below it, we might see stops hit and a slide immediately to the psychological level and common support area around 100. - If USD/JPY is bearish, I am very interested to see how the market reacts at 100 and whether it closes USD/JPY above or below this key level.- Below 100, we might see a slide towards the low on the year at 98.85 with risk of further downside. - This scenario would be likely if the FOMC releases a dovish statement.- However, if the FOMC appears ready to raise rates again by the end of this year, we should see USD/JPY hold above 101.- In the hawkish FOMC scenario, we can anticipate a push to at least the 103 handle.