Dollar Post-Tapering: Strongest in Five Years vs. Yen

The US dollar jumped today, reaching the highest level in five years against the Japanese yen, after the Federal Reserve announced tapering of its asset-purchase program. The currency maintained losses versus the Great Britain pound.
The Fed announced that it is going to reduce the size of monthly purchases:

In light of the cumulative progress toward maximum employment and the improvement in the outlook for labor market conditions, the Committee decided to modestly reduce the pace of its asset purchases.

The central bank trimmed its $85 billion program by $10 billion purchases per month. At the same time, the statement was very dovish, saying:

To support continued progress toward maximum employment and price stability, the Committee today reaffirmed its view that a highly accommodative stance of monetary policy will remain appropriate for a considerable time after the asset purchase program ends and the economic recovery strengthens.

They will not consider raising interest rates until the unemployment level falls below 6.5 percent. Outgoing Fed Chairman Ben Bernanke mentioned during press-conference inflation as the current concern for policy makers:

While we have passed or made significant progress on the labor market and growth hurdles, there is still this concern about inflation. If inflation does not show signs of returning to target we will take appropriate action.

EUR/USD sank from 1.3766 to 1.3668 as of 23:22 GMT today after rallying to 1.3809. USD/JPY jumped from 102.65 to 104.29, reaching the highest rate since October 2008. Meanwhile, GBP/USD advanced from 1.6262 to 1.6365, touching 1.6483 intraday — the strongest price since August 2011.

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