Given the fact that it’s FOMC day, it looks like the Yen has decided to preempt any interest rate rise and make the move higher on its own. There’s a strong chance of a rate rise at the December meeting and if that’s mentioned today then I think the USD might go on a tear.

As it stands we are moving in on 114 which as yet we haven’t really been able to crack. I’m bullish on the Yen, and I would be tempted to take a buy ahead of a break of that level.

It’s tough to trade ahead of a big announcement, but like I said it appears that the Yen is jumping the gun a bit and moving higher.

Post-announcement I would be happy to buy the USD/JPY on a break above key resistance at 114.50 if it looks like holding as I suspect we will only strengthen heading into the December meeting.

USD/JPY – 240 min Chart.