- FOMC minutes mostly ignored by market participants, contains no surprises.
- USD/JPY moves lower after minutes, consolidating daily losses.
The USD/JPY pair rose to 110.31 after the release of the FOMC minutes but then turned to the downside and dropped to 110.23, hitting a fresh daily low. As of writing it remains quiet, near daily lows, 25 pips below yesterday’s close. It is having the biggest loss in two weeks.
The US dollar dropped marginally across the board after the release of the minutes. According to them, the Fed’s patient approach is appropriate to policy for some time even in the case that global conditions improve. The minutes showed that many officials saw the decline in inflation as likely transitory. “A few participants noted that if the economy evolved as they expected, the Committee would likely need to firm the stance of monetary policy.”
The minutes had no significant impact in the market. The US dollar continues to trade within the recent ranges, posting mixed results for the day.
USD/JPY Short-term level
To the downside, below the daily low the next support might be seen at 110.20, followed by 111.00/05 and 109.80 (May 20 low). On the upside, now 110.45 is a resistance and above attention would turn to 110.65/70 (May 21 high).