The USD/JPY pair rose during the session as the Federal Reserve only managed to extend the “Operation Twist” instead of easing further and more aggressively. Based upon the Fed’s announcement, it looks as if the central banks have simply bought itself some time, and now it will step back and watch the rest of the world, and the US employment numbers. Because of this, the Non-Farm Payroll Fridays will become much more interesting this summer as the markets will focus on them much more intently.
The trigger price for us is still the 80.50 level, and we need to see a daily close above it in order to buy. The selling of this market isn’t in our vocabulary at the moment as the Bank of Japan is sitting below. In the meantime, we are simply watching this pair but not stepping in because of all of the slowing growth.
