The USD/JPY pair continued trading near its highest level in three months, after the BOJ intervened in the FX market for the third time this year to sell the yen, which drove the pair up sharply.
The central bank’s intervention could force the yen over the short term to trade lower against the dollar and other major currencies, as the yen didn’t reflect the Japanese fundamentals.
Profit taking pushed the USD/JPY pair down early Tuesday, while the greenback consolidated before the FOMC decision and amid renewed fears in Europe which might again negate all the efforts by Japan to weaken the yen amid fears and risk aversion.
On Wednesday, the U.S. economy will release the ADP employment change for August at 12:15 GMT, where it’s expected at 101 thousands from the previous reading of 91 thousands.
At 16:30 GMT, the Federal Open Market Committee will announce its Rate Decision, which is expected to be steady between 0.0% and 0.25%; and at 18:15 GMT Fed’s Governor Bernanke will speak at the Fed Press Conference.
See what are the upcoming financial event on the FX Empire Forex Economic Calendar now!
