USD/JPY hits a session high at 124.04
Given the drama in Greece, the non-stop rally in the pound and the uncertainty in commodities, USD/JPY is the most straight-forward way to but on a more-hawkish Fed and that appears to be the trade in the lead up to the meeting.
This quip from Tom di Galoma, head of rates trading at ED&F Man captures the sentiment of most. He said Yellen "will talk out of both sides of her mouth as best she can and I don't believe any larger theme will come from her testimony. However, I am expecting a violent reaction ... after the Fed decision and press conference today, as the markets are set up to take what little she may have to say and claim it to be hawkish."
Captures the mood
USD/JPY is at a one-week high after a steady, 50-pip rally that started when European traders arrived.
Offers:
- 124.13 - June 11 high
- 125.50 - medium offers
- 124.62/73 - June 9/11 highs
