The dollar has been a punching bag for the better part of three months, and just as it appears to have stabilized against other majors, it has yet to find firm footing against the yen. Today’s bout of risk aversion is not helping matters as USDJPY continues to hover below the key 109.00 level.
Tomorrow, however, the market will hear from the FOMC, and while no major policy change is expected a hawkish statement that reaffirms commitment to at least 3 rate hikes in 2018 would go a long way to helping the beleaguered dollar bulls. If USDJPY can clear the 109.50 barrier in the aftermath of the statement, it will have set a higher low double bottom and will have the foundation to rally further.
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