USD/JPY is challenging 103.00 ahead of the FOMC decision. A break could hit some stops but it’s one hour until the headlines cross and I’m wary of a bit of some second thoughts ahead of the decision. The pair has risen for 9 straight sessions and some profit taking ahead of the decision is possible.
Ultimately, I think it’s more likely that Yellen & Co will take a hawkish turn but in the meantime we could see a bit of a pullback in USD/JPY, other USD trades and bonds.
