USD/JPY: 2006 Weekly Chart

The Dollar was mildly soft overnight, as traders await the two-day Fed meeting later in the week. Anticipation has been growing for many weeks, as fears of inflation have drawn the market's attention and prompted a number of hawkish comments from Fed officials. The FOMC is widely expected to raise by a 25bps, with an outside chance of a 50pt hike. A half-point move would surely shake-up the market, as would a "dovish" press conference. The market is also pricing an additional 25-pt move in August. Read More....