Forex Pros – The U.S. dollar was relatively unchanged against the yen on Wednesday, trading in a narrow range as investors awaited the outcome of the Federal Reserve’s policy setting meeting, which was to conclude later in the day.
USD/JPY hit 80.16 during European morning trade, the daily low; the pair subsequently consolidated at 80.20, edging 0.01% lower.
The pair was likely to find support at 79.69, the low of June 8 and a five-week low and resistance at 81.05, the high of June 16.
Markets turned their attention to the Federal Reserve’s policy setting meeting, which was to be followed with a press conference by Fed Chairman Ben Bernanke later in the day.
Mr. Bernanke was widely expected to reaffirm the bank’s pledge to hold interest rates near zero for an extended period, while investors will watch for clues regarding the current round of quantitative easing, which was due to end on June 30.
Meanwhile, Greece’s parliament supported Prime Minister Papandreou’s new cabinet on Tuesday, wining the support of 155 out of 300 parliament members.
The confidence vote fuelled hopes that Greek lawmakers would support next week’s vote on harsh austerity measures, which include EUR28 billion in spending cuts and new taxes over the next five years.
The yen was also slightly higher against the euro, with EUR/JPY easing down 0.03% to hit 115.56.
Later in the day, the U.S. was to publish industry data on home prices, as well as a report on crude oil inventories.
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