By FX Empire.com
The USD/JPY pair dropped early Wednesday but still trading within the range near its highest level in three months. The weak dollar and the uncertainty in the financial market increased demand for the yen, in addition to the current correction after Monday’s incline.
The greenback retreated against most of its major counterparts before the FOMC meeting, while all market participants are waiting for hints from the Fed about the third round of quantitative easing.
The USD/JPY pair is expected to continue trading in a range before the FOMC meeting, where all the bets today will be for the US dollar, and the reaction will come from the Japanese currency.
On Thursday at 12:30 GMT, the U.S. economy will release the Non-Farm Productivity for the third quarter, where the preliminary reading is expected to come at 2.5% from the prior reading of -0.7%.
The Unit Labor Costs for the third quarter is expected to come at -0.4% from the previous reading of 3.3%.
At 12:30 GMT, U.S. economy will issue its weekly initial claims numbers, where the number of people filing for first-time claims for the state unemployment insurance increased 402 thousand last week.
The U.S. ISM Non-Manufacturing Composite for September will be released at 14:00 GMT, where it’s expected to come at 54.0 from the prior reading of 53.0.
