FX Action: USD-JPY has edged higher
FX Action: USD-JPY has edged higher as the dollar firms into the FOMC announcement, and with steadier stock markets today reducing the yen's natural safe-haven appeal. The pair nudged above 123.70, which is new intraday highs, bringing yesterday's 123.79 high into play. Data today saw Japan retail trade for June decline 0.8 % m/m, slightly better than the -0.9% consensus forecast, though to little market impact with market participants focusing on the FOMC in the U.S, which is likely to be dollar supportive. While the Fed is not likely to commit to signalling a rate hike as soon as September, a likely upbeat tone on the economy will maintain this as a possibility and provide a contrast to the BoJ policy path. USD-JPY support is at 123.07-10
