USD/JPY opened in Sydney at Y119.25 toward the upper end of Y118.24 to Y119.41 range seen during Tuesday’s session, with rising US Treasury yields and also improving US stock markets leading to broad based yen selling. Early dealings were muted and dollar-yen stayed within narrow trading ranges as the market focused its attention on the BOJ meeting, which ended today. Japanese stocks started the day slightly firmer and that helped dollar-yen stray above Y119.00 for much of the session. The release of the BOJ’s policy decision, although largely as-expected, sparked a move lower in dollar-yen. It however quickly recovered after that to trade toward Y119.15 in the afternoon. The pair last traded at Y119.12. BOJ Governor Kuroda starts his regular press conference at 0630 GMT where he is expected to discuss the board’s decision. Traders say there is good interest to sell dollar-yen between Y119.50 and Y119.60 from the exporter community, more between Y119.90/Y120.00 Support lies at 118.90 (100 & 200 HMA), resistance is noted at Y119.60 which marks the 61.8% Fibonacci retracement of the Y120.48 to Y118.18 fall.
