USDJPY Rises Ahead of FOMC Minutes

The dollar hit a fresh seven-year high against the yen on Wednesday, and held near a 14-month peak versus sterling, as investors added favourable bets ahead of Federal Reserve minutes that could highlight policy divergence with its peers.

The yen was on the defensive, falling to a six-year trough against the euro, after Japanese Prime Minister Shinzo Abe’s decision to postpone a sales tax rise was seen as supportive for stock markets and negative for the yen.

The dollar rose to as high as 117.44 yen, its highest level since October 2007. The dollar last traded at 117.35 yen, up 0.4 percent on the day.
The euro was up 0.4 percent at 147.25 yen, its highest since late 2008.

The yen showed limited reaction after the BOJ kept policy unchanged on Wednesday as expected.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza