Intra-Day News and Views (USD/JPY) & data to be released today: Oct 29, 2014

Intra-Day Market Moving News and Views 
29 Oct 2014   02:08GMT

USD/JPY...... Despite dlr's volatile trading in Tuesday's NY session after release of mixed U.S. eco data, price rebounded after meeting renewed buying at 107.70 and traded firmly against the yen in NY afternoon.
Dlr rose above European high of 108.17 to a fresh intra-day high of 108.19 near NY close and then marginally higher to 108.23 in Tokyo morning on the rally in Nikkei index (currently up 1.36% to 15538).

Although cross-selling in yen on improved risk appetite after yesterday's rally in global stocks suggests buying on dips is recommended, sharp gain above Monday's 2-week peak at 108.37 is not envisaged as market participants are reluctant to enter large position ahead of the release of FOMC statement later in NY afternoon today.
The Fed is widely expected to announce the end of its bond-buying program today, though uncertainty as to whether or not the statement will contain dovish or hawkish language surrounding interest rates. As no press conference is scheduled, market won't hear any comments from Fed Chair Janet Yellen.

At present, bids are noted at 108.00-107.90 and around 107.80 with mixture of bids and stops emerging below 107.60.
On the upside, offers are placed at 108.30-40 and then 108.50 with stops located just above 108.70, however, heavy selling interest from various accounts is touted in the 108.90-109.10 region.

News from WSJ about today's Fed's monetary policy announcement worth noting. The newspaper reported that Federal Reserve officials meeting Tuesday and Wednesday are virtually certain to end their latest bond-buying program, but they won't be retiring the policy for good.

Their recent comments show bond purchases are now an established part of the Fed's policy tool kit that they could employ again in times of deep economic trouble.

Several Fed policy makers said they think the latest round of Treasury n mortgage-bond purchases, begun in late 2012, helped lower long-term interest rates, boosting hiring and growth. But they also see a high bar to launching more bond buying (QE) seeing it as a last resort to use only if very low interest rates n communications efforts were to fail to reverse a sharply worsening economic outlook.

Fed Chairwoman Janet Yellen has said she wouldn't rule out more bond buying if needed, and Fed Vice Chairman Stanley Fischer deemed the program 'largely successful.'

Many investors expect the Fed to start raising its benchmark short-term rate from near zero in the middle of next year, a view some top officials have encouraged.

Wednesday will see the release of Japan's industrial output, New Zealand ANZ business outlook, U.K. mortgage approval and mortgage lending, Canada's producer prices, FOMC rate decision and Fed's monetary policy statement.