The Japanese yen rose slightly versus the majority of the majors, but fell against the US dollar as indicators of risk sentiment – such as the CBOE’s VIX Index – declined while and US equity markets rallied.
There was no pertinent economic data on hand for the currency, though it’s questionable if that matters as the yen is likely waiting for the next big shift in risk appetite market-wide. Like many markets, indexes like the DJIA may not fully respond to the Federal Reserve news until Wednesday’s trading session, and as a result, there’s still downside potential for USD/JPY. [B]My fundamental bias for the Japanese yen: slightly bullish.[/B]