USD/JPY rebounds on cards despite short downward as Fed views weigh

The latest Federal Reserve policy meeting ended Wednesday and tips-off with more decisive evidence is needed before it starts raising interest rates.

The benchmark interest rate in the US was left unchanged at 0.25% on June 17^th but Federal Reserve officials indicated the U.S. economy has been growing moderately after a winter contraction and likely strong enough to support an interest rate increase by the end of the year.

Yellen's remarks to reporters after the rate-setting FOMC left the federal funds rate near zero reaffirmed its two conditions for starting to standardize rates.

On the flip side, Japan's real average wages were corrected down to a drop of 0.1%. This data emphasizes the complexity of significant and constant increase in real wages, the key to reviving consumption in Japan.

We think dollar rallies to pull back in medium term perspectives albeit Japanese economic climate holds good but trade balance has not been attractive on global level. Trade deficit of 216 JPY billion in May of 2015 and balance of trade in Japan averaged 376.63 JPY Billion from 3-4 decades until now.