The yen was firmer next to major currencies Tuesday shortly after the Bank of Japan (BoJ) proclaims it is maintenance its overnight call rate target unchanged at 0.5 percent in favor of the 13th straight meeting. But the Japanese currency soon weakened somewhat after the stock market complete losses at the open of the afternoon session. At 1.06 pm (0406 GMT), the yen was trading at 106.23-27 yen next to the US dollar, match up to 106.12-16 yen shortly after the BoJ proclaim its conclusion and from 106.19-23 yen before the declaration.

The euro was quoted at 153.40-45 yen next to the yen match up to 153.29-34 yen after the proclamation and 153.46-51 yen earlier.' But Japan's economy itself has not go down to the level which need a rate cut and a BoJ rate cut by 25 basis points would be dubious to do much about the stock sell off '. The Japanese central bank also needs to determine if the Japanese economy can achieve a constant recovery despite emerging uncertainty about domestic private demand and the appreciation of the yen. The Bank of Japan said the nine members of its policy board chosen generally to leave the rate unchanged.

Refer: http://www.forbes.com/markets/feeds/afx/2008/01/21/afx4555413.html