The pair opened higher at Y104.28 while euro-yen also higher at Y142.71 in Asia post FOMC and pulled back lower from session highs of Y104.38 & Y142.84 to hit daily lows of Y103.78 & Y142.84 respectively. Post FOMC saw yen crosses rallied overnight, triggering stops and short covering during NY session but saw this morning in Asia saw heavy profit taking sending both rates lower while pausing at levels of Y104.04 & Y142.42, Y104.02 & Y142.28 and Y103.78 & Y141.90. Thereafter buyers supported dollar-yen while euro-yen cross selling continued as it slid to session low of Y141.87 and the euro-dollar started the decline amid a fairly tight range morning. Dollar-yen rebounded higher as it consolidated between Y103.91 to Y104.00 before bouncing to current level of Y104.07, while euro-yen found buying interest and rebounds to Y142.19 last. The Nikkei rallied following overnight rally in US stocks as market perceived it asa ‘dovish’ taper, boosting riskier assets and the index rose 1.85% in afternoon session. This provided support for yen crosses though there were heavy liquidation in the yen, ahead of BOJ policy announcement tomorrow as the central bank started a two-day policy meeting today.
