Dollar/Yen Pauses Ahead of FOMC Decision

The dollar/yen pair struggled to establish direction in Tokyo's foreign exchange market on the 16th, ahead of the Federal Open Market Committee (FOMC) decision scheduled for the early hours of the 17th Japan time. Despite briefly extending gains to near 155.50 yen early in Asian trading hours, aggressive upside momentum was limited.

According to order data from Gaitame.com, buy limit orders were positioned at 154.50 yen, a level where the 5-day moving average is believed to be located. This suggests demand for buying on dips ahead of the FOMC announcement.

The pair traded at 155.24-24 yen per dollar at midday, up 0.37 yen from 154.87-88 yen at 5:00 p.m. the previous day. The presence of sell orders above current levels and buy limit orders below suggests a wait-and-see mood ahead of the FOMC decision.