USD/JPY Main G10 Mover On Tokyo Holiday

The yen remained best G10 performer, amid fluctuating risk sentiment and post-FOMC musings, in thinner-liquidity environment due to a public holiday in Japan. The Fed's monetary policy decision sparked a volatile reaction in USD/JPY, with participants on constant intervention watch after officials repeatedly emphasised their round-the-clock FX monitoring policy.

• Heightened geopolitical tensions in Asia may have increased the yen's safe-haven allure after North Korea test-launched a suspected ICBM, triggering the J-Alert warning system in three Japanese prefectures.
• USD/JPY sales underpinned broader greenback weakness, with the BBDXY pulling back into negative territory and away from post-FOMC highs. Profit-taking may have facilitated the move, with the U.S. dollar paring gains registered on the back of higher terminal rate expectations articulated by Fed Chair Powell.
• China's Caixin Services PMI printed below expectations (48.4 versus 49.0 consensus forecast), which comes on the heels of a beat in Caixin M'fing gauge earlier this week. Both remained in contractionary territory last month.
• The central bank marathon continues, with the Bank of England and Norges Bank set to decide on rates. There is plenty of central bank rhetoric scheduled on top of that, particularly from a slew of ECB members, including President Lagarde.
• Weekly jobless claims, trade balance, factory orders and final durable goods orders are due out of the U.S. today.