USD/JPY: FOMC and BoJ remains the catalysts - FXStreet

Valeria Bednarik, chief analyst at FXStreet explained that the USD/JPY pair settled after the wild swings suffered early Wednesday, showing a limited reaction to FED's announcement, as the pair is being driven mostly by the many twists and turns of Japanese authorities.

Key Quotes:

"The YEN plummeted amid stimulus package details were unveiled by PM Abe, who agreed a fiscal stimulus package of over JPY 28trn, to be announced early August. At the same time, there rumors making the rounds of a plan to issue 50-year JGB plan in the coming days, later denied by FM Taro Aso.

"The pair jumped to a daily high of 106.53, before retreating, with the upside being limited later on the day by poor US data, as June Durable Goods Orders came in much worse-than-expected, falling by 4.0%."

"The pair will likely enter now in wait-and-see mode ahead of the upcoming BOJ's meeting early Friday, but the short term picture favors the downside."