Overnight trading in Asia has been pretty eventful with the JPY regaining some of its’ poise, USD/JPY presently down at 96.70 from a high around 99.70 and EUR/JPY down at 122.95 from a high around 127.30. The psychological 100.00 line in USD/JPY proved a step too far for the JPY bears, as Japanese exporters sold into the rally. There also appears to be some scepticism surrounding talk of a BOJ rate cut this coming Friday. On the economic front there was some good news with Japanese preliminary industrial output increasing 1.2% mom, some way above the consensus estimate of +0.3%. For today, the main focus will be on the outcome of the FOMC meeting, with the market favouring a 50 bps rate cut. That said a more aggressive ease wouldn’t really come as a major shock given the parlous state of the U.S. economy.