USD/JPY current relapse extends close to 142

Since the USD/JPY peaked at 143.95 much earlier today it has been falling back and just now it is threatening the 142 handle. So, as you can see that is quite some way adrift of the highs seen earlier. The dollar is now lower versus Europe since earlier and now the focus shifts to the BOJ policy decision due out in the early hours tomorrow. The Bank of Japan is expected to announce that at around 4am GMT tomorrow. The low seen earlier today was set at 141.89 and that is now under threat it seems. The markets do not expect a change from the BOJ tomorrow and certainly the 0.50% Fed rate cut would seem to have stymied the risks of a BOJ rate hike. At the same time, if the BOJ choose to look through that and deliver a hike, the USD/JPY could be un trouble. It is just now trading at 142.16