US dollar traded with stability against the Japanese yen on Wednesday ahead of the keenly anticipated outcome of Federal Reserve Banks policy meeting, as expectations pointed asset purchase tapering to a certain extent.
USD/JPY reached a session high at 99.32 at 1:40 GMT, after which consolidation followed at 99.17, up by 0.05% for the day. Support was likely to be received at September 16th low and also an eight-month low, 98.44, while resistance was to be encountered at September 13th high, 99.97.
Market players were expecting the outcome of Fed’s two-day policy meeting. The Federal Open Market Committee (FOMC) might decrease Treasury purchases to 40 billion USD and continue to buy 40 billion USD of mortgage backed securities, according to the median estimates of experts participated in a survey by Bloomberg. Federal Reserve policymakers have pledged to maintain the benchmark interest rate at levels close to zero at least as long as unemployment rate exceeds 6.5% and the inflation outlook is no more than 2.5%. The US central bank will also release its economic forecasts for 2016 today, including its benchmark interest rate outlook.
Meanwhile, the yen was gaining against the euro, with EUR/JPY cross decreasing 0.38% to trade at 131.94 at 8:37 GMT. GBP/JPY pair was little changed, gaining 0.04% to trade at 157.75 at 8:41 GMT.
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