To the markets’ surprise, it was not an overwhelming consensus. There was one dissident – Goshi Takaoka – who voted against the decision. Anyways, the results were JPY-positive, but the currency’s reaction was sluggish.
USD/JPY touched the lows near 112.95 and after that met some buying interest, which helped the pair to climb to the area of session’s high near 113.40.
In broad terms, USD/JPY dynamics looks like a Pushmi-pullyu: the Yen was unimpressed with a boring press conference, the USD can’t advance amidst a political turmoil in the US. At least, on Thursday Trump may announce who will replace Yellen, and maybe some action will finally begin.
During the last two months, USD/JPY was not able to regain the 115 mark. The bulls are disappointed, indeed, but the pair will probably make another try.
On the other side, "buying the dips" may attract some investors, which may swing the pair. Anyhow, we do not expect any significant step from the Fed tomorrow.