A slow start for the JPY as Tokyo markets re-opened after a holiday Tuesday. Note, Japan is marking the so-called Golden Week holidays and as such market activity is relatively subdued. Dollar-yen opened at Y102.64 and spent the opening few hours at Y102.60/67 before dipping to Y102.54 after the release of Japan’s industrial output data. Dollar-yen held above Y102.50 as demand remained healthy but eventually fell through on cross yen selling by Japanese life insurers and other corporate accounts, dealers said. Euro-yen meanwhile traded lower from the get-go, opening at Y141.76 and thensliding to Y141.51. Dollar-yen fell through Y102.50 and then traded down to Y102.33 as speculators also sold ahead of the BOJ decision, and euro-yen followed suit, dropping to a Y141.28 low just before the BOJ announcement. The BOJ’s as-expected decision saw only a minor reaction with dollar-yen briefly trading up to Y102.48 before sliding back, while euro-yen went to Y141.47 and then back to Y141.36. Dollar-yen last at Y102.39, with the focus now on the BOJ’s semi-annual Outlook Report due at 1500 Tokyo (0600 GMT) and Governor Kuroda’s news conference, which starts 30 minutes after that.
