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28 Jan 2014
USD/JPY bullish ahead of FOMC
FXstreet.com (London) - USD/JPY has rallied through the morning session ahead of the US Federal Reserve’s two-day FOMC meeting.
Waning haven demand for JPY
JPY fell overnight as signs of temporary stabilisation in emerging markets dampened haven demand for the yen. In addition, the Industrial & Commercial Bank of China yesterday announced that it would shore up investments in its CNY3bn trust product that had been under threat of default.
Fed tapering expectations
USD/JPY sank to six-week lows at JPY102.02 on Friday on Japanese haven demand and views that the yen had been oversold. The pair has been in a broad bullish trend since the last Fed meeting on 18 December, then the central bank announced that it would be cutting it’s monthly asset purchases by USD10bn to USD75bn a month. It is expected that at the conclusion of the FOMC meeting tomorrow, the Fed will announce further tapering while maintaining a dovish outlook, supporting risk.
USD/JPY is currently trading at JPY103.1450, up 0.5 percent on the day and close to earlier highs at JPY103.2510.
Waning haven demand for JPY
JPY fell overnight as signs of temporary stabilisation in emerging markets dampened haven demand for the yen. In addition, the Industrial & Commercial Bank of China yesterday announced that it would shore up investments in its CNY3bn trust product that had been under threat of default.
Fed tapering expectations
USD/JPY sank to six-week lows at JPY102.02 on Friday on Japanese haven demand and views that the yen had been oversold. The pair has been in a broad bullish trend since the last Fed meeting on 18 December, then the central bank announced that it would be cutting it’s monthly asset purchases by USD10bn to USD75bn a month. It is expected that at the conclusion of the FOMC meeting tomorrow, the Fed will announce further tapering while maintaining a dovish outlook, supporting risk.
USD/JPY is currently trading at JPY103.1450, up 0.5 percent on the day and close to earlier highs at JPY103.2510.