FXStreet (Mumbai) - The USD/JPY pair saw a massive spike and broke above 121 barrier in a knee-jerk reaction the BOJ policy decision, with the central rolling out further easing by introducing negative interest rate policy. USD/JPY spikes from 118.57 The USD/JPY pair trades +1.57% at 120.65, having rocketed to fresh monthly highs at 121.40 last minutes. The yen lost complete control and dropped almost 3 big figures after the Bank of Japan (BOJ) turned out absolutely dovish and eased its monetary policy further by adopting negative interest in tandem with QQE. Adding to the negative sentiment around the yen, the BOJ downwardly revised its GDP forecasts while pushing back the timing for achieving its 2% price target by 6 months from H2 FY2016. Markets were caught-off as the BOJ turned out more dovish than expected and appeared concerned over the Japanese growth outlook in wake of the oil price falls. Meanwhile, markets continue to digest the BOJ latest policy measure and await Kuroda’s presser for further insights. USD/JPY Technical levels to watch In terms of technicals, the immediate resistance is located at 121.50 (round number). A break above the last, the major could test 122.22 (Dec 11 High). While to the downside, the immediate support is located at 120 (psychological levels) below which 118.53 (Daily low) would be tested. For more information, read our latest forex news.