29 Jan 2014
USD/JPY falls as risk rally fades
FXstreet.com (London) - USD/JPY has tumbled in the early session ahead of the conclusion of the Federal Reserve two-day FOMC meeting.
Demand for safety returns
JPY had been given a lift on declining EM contagion risk expectations, following the drastic move from the Central Bank of the Republic of Turkey. The CBRT hiked rates by 425 basis points to 12 percent yesterday, easing contagion fears over the runaway lira. The risk-on rally initially eased some JPY strength on haven demand, but the rally has been short lived, with both JPY and CHF regaining ground.
Today is likely to see some choppy USD/JPY trading ahead of the Fed’s announcement at 19:00 GMT. Consensus expectations are for the Fed to continue with its tapering programme, despite disappointing jobs numbers at the beginning of this month.
USD/JPY is currently trading at JPY102.7450, down 0.59 percent on the opening of JPY103.4115 after a high at JPY103.4115, remaining in a bearish trend.
Demand for safety returns
JPY had been given a lift on declining EM contagion risk expectations, following the drastic move from the Central Bank of the Republic of Turkey. The CBRT hiked rates by 425 basis points to 12 percent yesterday, easing contagion fears over the runaway lira. The risk-on rally initially eased some JPY strength on haven demand, but the rally has been short lived, with both JPY and CHF regaining ground.
Today is likely to see some choppy USD/JPY trading ahead of the Fed’s announcement at 19:00 GMT. Consensus expectations are for the Fed to continue with its tapering programme, despite disappointing jobs numbers at the beginning of this month.
USD/JPY is currently trading at JPY102.7450, down 0.59 percent on the opening of JPY103.4115 after a high at JPY103.4115, remaining in a bearish trend.