Dealers are impressed at USD/JPY’s resilience despite the BOJ’s unusual 20 bp rate cut (the market had expected a more traditional 25 bp cut) and the decline in Nikkei and the dip in US stock futures. Dollar demand later this morning may be the underpinning factor for the near-term. Exporter sales are not expected for another yen or so on the topside from the present levels near 98.00.
Commodities trade softly as do emerging markets, this morning. These conditions are generally a drag on USD/JPY.