FOMC kept the policy rate unchanged, and there was no strong directional move in USD/JPY.

【1/29Market Overview

Tokyo time, USD/JPY rose to155.79yen at the onshore fix, but afterwardFOMC anticipation-led position adjustments dominated, bringing it down to155.00yen. In European time, USD/JPY, ahead of the FOMC announcement, showed a cautious stance, and during the London fix, there was seen a flow of yen buying and dollar selling, briefly pushing it to154.93yen.NY time,FOMC as expected held rates steady. The statement revised the assessment of the labor market from “generally easing” to “solid.” Inflation was described as being “somewhat elevated” as before, but the fragment “progress toward the 2% goal” was removed.FRB signaled caution about future rate cuts, and USD/JPY rose to155.61yen. In Powell'sFRB press conference, he said the deletion of the phrasing on inflation does not imply anything particular. Also, with the economy remaining robust, there is no need to rush policy stance adjustments, and the view that more data is needed for additional rate cuts remains unchanged, causing dollar/yen to struggle to move higher.

【1/30Market View