USD/JPY battles to hold 155 after BOJ rate increase

Earlier this morning and earlier than forecast, the Bank of Japan did as was generally expected and raised their OCR (Official Cash Rate) by 0.25%, to 0.50%. Prior to this outcome the USD/JPY had traded lower following a US close at 156.05. Initially the dollar lifted towards 156.50 on the news, but that was very quickly reversed and since then the direction has been lower. Not that long ago the dollar tested the 155 handle, but so far that has held the downside. As to whether that remains the case from here on is not certain though. Earlier today the Nikkei 225 did open higher, at 40,060 and then traded to a fresh interim high, at 40,279. However, the fall in the USD/JPY and the overall reaction to higher Japanese interest rates has pushed the index back underneath 40k. The range on the USD/JPY so far has been covered by 155.01 to 156.41. The USD/JPY is currently trading at 155.13