On Wednesday, the USD/JPY pair oscillated between gains and losses, eventually settling slightly lower following the release of the FOMC Meeting Minutes. The pair is currently trading at around 110.55, as markets rose in response to the news, while government bond yields fell. Policymakers in the United States reiterated that they will keep the current monetary policy in place until they show significant progress toward the central bank’s employment and inflation goals. It’s worth noting that the vast majority of participants thought the risks to their inflation forecasts were on the upside.
“In future meetings,” “participants agreed to continue assessing the economy’s progress toward the committee’s goals and to begin discussing their plans for adjusting the path and composition of asset purchases,” and “participants reiterated their intention to provide notice well in advance of an announcement to reduce the pace of purchases,” according to the statement.
The near-term picture is bearish, but a violation of the 110.30 support region, where the pair bottomed this week, would indicate a bearish trend. If the pair ultimately recovers over 111.00, bulls may have a chance./n
