FxWirePro: FOMC minutes fail to lift the dollar, USD/JPY slips below 100 mark
FOMC minutes overnight which proved to be less hawkish than expected after Dudley's comments failed to lift the dollar. Some policymakers expect that a rate increase will be needed soon, although there is general agreeme…
FOMC minutes overnight which proved to be less hawkish than expected after Dudley's comments failed to lift the dollar.
Some policymakers expect that a rate increase will be needed soon, although there is general agreement that more data is needed before such a move.
USD/JPY hit highs of 101.16 after Dudley's hawkish comments, but pared most of the gains and closed largely unchanged at 100.26.
The major is extending downside in the Asian session today, slipped to lows of 99.64 before recovering some losses to currently trade at 99.96 levels.
We see strong trendline support at 99.45 levels, break below could see test of 99 and then 98.78 (June 24 low).
10-DMA at 101.23 is stiff resistance on the upside, only break above could show signs of reversal.
Fear of BoJ intervention looms as yen trades stronger, we expect range trade in the pair for the week ahead.
Financial Services Agency (FSA), Ministry of Finance (MoF) & Bank of Japan (BOJ) ‘Japanese Troika’ is scheduled to meet today, odds of another disappointment are high.
