Yen Remains On The Defensive

Firmer risk appetite saw USD/JPY trade with a bullish bias on Wednesday, with liquidity thinned out by a market holiday in Japan. The announcement of the FOMC's monetary policy decision and subsequent presser with Jay Powell inspired some fresh volatility, but the rate still finished a tad higher on the day.

• On the Covid-19 front, Mainichi reported Japan could start easing border controls as soon as next Monday.
• The final reading of Japan's Jibun Bank Services PMI for October comes out at the bottom of the hour. Looking further afield, household spending is due tomorrow.
• USD/JPY sits at Y114.06 as we type, a handful of pips better off. The yen is still showing some broader weakness, as local markets reopen.
• Bulls look for a break above Oct 20, 2021/Nov 6, 2017 highs of Y114.70/73, which would clear the way to Mar 10, 2017 high of Y115.51. Meanwhile, a fall through Oct 28 low of Y113.26 would expose the round figure of Y113.00, which limited losses on Oct 12.