Yen Soars After BoJ Minutes, Greenback Slips With All Eyes On Fed

The yen has soared in early Tokyo trade amid noisy background, filled with headlines surrounding the minutes from the BoJ's September monetary policy meeting, Governor Kuroda's parliamentary testimony and a fresh North Korean missile test.

• Spot USD/JPY has shed close to a full figure and last deals at Y147.32, with bears looking to retest support from Y147.00 which limited losses Tuesday. AUD/JPY has shed over 50 pips printing new weekly lows.
• Other safe--haven currencies (USD, CHF) have not appreciated in sync with the Japanese yen, as the greenback lags all major peers at typing amid softer U.S. Tsy yields.
• U.S. e-mini futures have crept higher even as North Korea test-launched three ballistic missiles, triggering an air raid alarm on a South Korean island, and hitting high sea waters south of the Northern Limit Line.
• Bloomberg cited trader sources attributing sharp yen purchases to the BoJ minutes, which showed that several board members made reference to FX markets at the September meeting.
• When it comes to scheduled events, Wednesday is all about the Fed's monetary policy decision, with policymakers expected to raise interest rates by 75bp.
• Outside of the much awaited Fed Chair Powell's presser, we will hear comments from ECB's Makhlouf, Villeroy & Nagel.
• U.S. ADP employment change, German jobless rate and manufacturing PMI readings from several European economies will take focus on the data front.