The pair re-approaching two-and-a-half-year highs ahead of the outcome of the Federal Reserve’s policy meeting and U.S. data on economic growth later in the trading day. USD/JPY hit 91.21 during late Asian trade, the pair’s highest since Monday; the pair subsequently consolidated at 91.16, gaining 0.50%. The pair was likely to find support at 90.32, Tuesday’s low and near-term resistance at 91.23, Monday’s high and the pair’s highest since mid-June 2010. Market participants were looking ahead to a series of major U.S. economic events, including preliminary data on U.S. fourth quarter growth and the outcome of the Federal Reserve’s policy setting meeting later Wednesday. The Federal Reserve was expected to reaffirm its commitment to its easing program until the U.S. unemployment rate falls below 6.5%. The U.S. was also to release data on January’s ADP nonfarm payrolls, ahead of Friday’s government data on nonfarm payrolls. In Japan, Prime Minister Shinzo Abe earlier rejected criticism that Japan’s fiscal and monetary stimulus program was aimed at weakening the yen, saying the measures were aimed at combating deflation. The yen it 21-month lows against the euro, with EUR/JPY up 0.57% to 123.08.
EasyForexNews Research Team