JPY today fell to a 2-month low against the US dollar, as last night’s FOMC minutes said QE tapering was likely in the coming months on better data. Dollar-yen opened at Y100.03 this morning after the overnight low of Y99.83 while euro-yen started at Y134.43. Dollar-yen headed north from the start of the session, and climbed above Y100.20 soon after Japanese stocks opened. The pair extended the gains around mid-morning and rose to Y100.53. It then stayed near that high through the morning, seeing only minor pullbacks to around Y100.30. Euro-yen was also held up through the morning,holding a Y134.67 to Y134.96 range. Yen pairs witnessed another rise back to the morning highs after the BOJ’s decision to keep its policy target unchanged earlier, before it eased again. Dollar-yen was last at Y100.40 while the cross was at Y134.75. Dollar-yen earlier broke through a rumored Y100.50 barrier while support is seen at Y99.53, a 23.6% retracement of Y96.57-Y100.44. Medium term outlook seen constructive while the pair remains above the Y98.67/72 area, which is the 100-day moving average and the Kijun line of Ichimoku cloud, respectively.
