FXstreet.com (Barcelona) - Asian markets are mixed on Thursday after the Fed announcement of a $1.2 trillion plan to reactivate U.S. economy. The Dollar reacted to the news with considerable declines, specially against the Yen.

The Federal Reserve announced a $1.2 trillion injection which contemplates a purchase of $300 billion long-term government bonds and about $750 billion in mortgage-backed securities, in order to buoy the country's housing market.

Analysts have been shocked by the announcement, fearing that such an extraordinary action might suggest, that the U.S. economic outlook is worse than originally thought, and markets have reacted with caution. Tokyo Nikkei Index has edged down 0.3% as exporters have been punished by a stronger Yen. Hong Kong's Hang Seng was 0.1 % up, and South Korea's Kospi lost 0.7%.

Yen soars, Pound and Euro also up

USD/JPY has dropped more than 250 pips after the Fed's plan was released dropping from right above 98.00 to a bottom at 95.27, a fresh three-week low, to edge up later towards 95.66 resistance level (Mar 12 low). The Dollar is oversold in the hourly and 4 hour chart.

EUR/USD has soared to a fresh 9-week high reaching a maximum level at 1.3535 from right above 1.3100, at the moment the pair consolidates above 1.3415.

GBP/USD jumped about 400 pips after the Fed's release reaching its highest level since the first of March at 1.4335, although the pair has been unable to hold t hose levels and has stepped back towards 1.4180 support level.