The yen has found poise in early Tokyo trade, with regional players reacting to the Fed's monetary policy decision and the subsequent presser with Chair Powell, who raised the prospect of a slower, more data-dependent rate hike path going forward. This has lent support to to U.S. Tsys, promoting further narrowing in the yield gap with Japan.
- The fact that all three e-mini contracts trade in the red, suggesting that the post-FOMC rally may have run its course, may be aiding the yen. Both JPY and CHF, the two traditional safe havens, have garnered some strength.
- USD/JPY has shed ~30 pips thus far, with regional risk barometer AUD/JPY down ~31 pips. the weakening in spot USD/JPY is out of sync with yesterday's upswing in USD/JPY 1-month risk reversal, which has been extended this morning.
- Key Asia-Pac data releases include Australian retail sales & New Zealand ANZ Business Confidence. After hours, focus will turn to German CPI as well as advance GDP & PCE data & initial jobless claims due out of the U.S. Comments are due form ECB's Visco.