Tomorrow is the FOMC meeting and the market is focused on both the dot plot and the tone of Jerome Powell’s first press conference as Fed Chair. If Mr. Powell remains upbeat about the US economy and maintains a hawkish bias with regard to US monetary policy that is likely to help USDJPY and all the yen crosses, of which AUDJPY remains the strongest.

The pair looks to have carved out a double bottom at the 81.00 figure and while the buyers and sellers are in a tug of war today, any clear signal from the Fed should help it to break out above the 82.00 figure in tomorrow’s trade and set it on a course towards 83.00