Free Trial

FOMC initial react saw USD/JPY spike.....>

DOLLAR-YEN
MNI (London)
DOLLAR-YEN: FOMC initial react saw USD/JPY spike to Y109.29, as rate cut was
viewed as 'hawkish'. However, further comment suggested the Fed is a long way
off considering hikes and the USD pared gains, sending USD/JPY to Y108.72 before
closing at Y108.84. Asian traders reported that leveraged names provided early
session sell pressure, forecasting that the BOJ would leave rates unchanged.
This proved correct and rate extended pullback to Y108.59 but was seen meeting
demand into the dip (profit taking?). Rate came under fresh downside pressure
into Europe but support around Y108.60 so far holds it in check. Support has
been suggested between Y108.60/50. Resistance remains into Y109.30, with a break
of Y109.35 likely to boost upside hopes. Month-end and some models are
suggesting USD sales to be seen. 
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.