FXStreet (Delhi) – Research Team at BBH, notes that the Bank of Japan surprised the markets as it did not expand its asset purchase plan, which was the main focus of many market participants, including ourselves. Key Quotes “Instead, following a rash of disappointing data, the BOJ introduced negative interest rates on some excess reserves and vowed to do more if necessary. Today's action, like the expected decision in October 2014 to increase what Japan calls Quantitative and Qualitative Easing was on a 5-4 vote. It has sent the yen and Japanese interest rates sharply lower while lifting equity prices. The dollar initially soared to nearly JPY121.50 from JPY118.50. There are large option strikes today for the NY cut, including $1.75 bln at JPY120 and $3.5 bln at 121, according to reports. There is also talk of a large barrier struck at JPY121.50. The yield on the benchmark 10-year JGB was more than halved to 9 bp. The yield curve is negative going out through eight years. In a volatile session, the Nikkei closed 2.8% higher. It had initially traded below yesterday's lows and then rallied and closed above yesterday's highs. It finished above its 20-day moving average for the first time since early December. Financials were the strongest sector in the Nikkei, adding on almost 5.6%, though bank shares themselves fell 2.3%. In the broader Topix index, financials underperformed. While the Topix rose 2.9%, financials rose 1.8%, and the bank sub-sector lost 2%.” For more information, read our latest forex news.