Careful...Liquidity conditions whip the dollar around after FOMC

The highlighted headline that "Many saw a June rate rise as unlikely" sent the dollar lower initially, but the greenback has recovered in volatile trading. Liquidity conditions remain a concern as traders hash through the report.

Technically, the EURUSD currently remains above the 1.1065 support level - after trading as high as 1.1140. The low and high remained with the days trading range. The midpoint being 1.1106.

The USDJPY traded quickly down to the 200 bar moving average on the 5 minute chart (green line in chart and below the 121.00 level) but then shot up to new highs at 121.466. The pair is back to 121.30 level now.

I would not put much faith in the moves one way or the others. Dollar sellers were likely caught below and buyers may have been caught above. This can cause some additional short term volatility.

What did we learn fundamentally? For me, it is that the June is likely off the table, but September remains the likely choice. Is that anything earth shattering? Not really.

PS, the USDJPY is back down testing the lows.