Chart: WorldWideMarkets Alpha Trader
Dollar yen eased down slightly to 121.25 after the BOJ monetary policy announcment and held a fairly tight trading range of 121.50 and 121.22 from Asia to the European morning session.
The Bank of Japan concluded its two-day monetary policy meeting on Tuesday, where the BOJ left its policy unchanged, widely expected. It maintained its stimulus program of 80 trillion yen. ($569 billion). BOJ offered a slightly dovish view on inflation and epects the core CPI to remain around zero percent as energy prices declined. The BOJ added, Japan's economy is expcted to to continue to recover at a moderate pace and trend.
The market focus will be on the Fed's two-day meeting beginning Tuesday 3/17 to Wednesday 3/18. Speculation have been on the rise that the Fed will omit the word "patient" from its FOMC statement on the timing of raising interest rates. Expectations for tightening monetary policy may be as early as June which had prompted the dollar's recent strong gains.