US dollar traded slightly higher against the Japanese yen on Tuesday, as investors were predominantly cautious ahead of the outcome of Federal Reserve Banks two-day monetary policy meeting, starting today.
USD/JPY reached a session high at 99.36 at 3:00 GMT, the pairs highest point since September 13th, after which consolidation followed at 99.23, gaining 0.14% on a daily basis. Support was likely to be found at September 16th low, 98.44, while resistance was to be encountered at September 13th high, 99.97.
Federal Reserve Vice Chairman Janet Yellen is President Barack Obama’s top candidate to take over the Federal Reserve Bank even after her supporters helped force his initial favorite to leave the contest for the Governor post. Lawrence Summers, Barack Obama’s former economic adviser, removed his name from consideration rather than face what he said would be an “acrimonious” confirmation process, Bloomberg imparted. There have been speculations that, given Summers’s past questioning of the effectiveness of Feds Quantitative Easing, he might have reduced the scale of the stimulus program faster than his contenders.
This contention for the successor of Ben Bernanke as Fed Chairman coincided with central banks two-day meeting over at what pace to pare back its 85 billion USD in monthly asset purchases.
Elsewhere, the Japanese currency was lower against the euro, as EUR/JPY cross added 0.30% to trade at 132.53 at 8:05 GMT. GBP/JPY pair was gaining 0.39% to trade at 158.15 at 8:06 GMT.
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