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  • Market participants ignored FOCM minutes, DXY holds steady. 
  • FOMC minutes: Members consider rates likely appropriate if there is no material change. 

The USD/JPY pair remains steady, hovering around 108.00 following the release of the FOMC minutes. Previously the pair hit a fresh two-month low at 107.82 on rumors about an attack on a US military base in Iraq, but those were later denied and USD/JPY rebounded. 

The minutes from the FOMC December 10-11 meeting showed that a few policymakers raised concerns that keeping rates low for a long time could exacerbate imbalances in the financial sector and that the central bank would adjust policy if there is a material reassessment of the outlook. 

Fed’s document contained no surprises, having no impact across financial markets. The USD/JPY remains near monthly lows, as the Japanese yen consolidates gains across the board. Risk aversion earlier today boosted the currency and also US bonds. 

From a technical perspective, if it confirms below 108.00, it would open the doors to more losses for the greenback while a recovery above 108.25 could alleviate the bearish pressure. Overall, the chart is biased to the downside.