The dollar got its butt kicked yesterday. USDJPY finished the day 88 pips below its opening price at 79.30. So why did the get whooped in yesterday's trading?
It was mainly due to FOMC meeting minutes showed that the Fed is eager on providing the economy more stimulus. The Fed said in its statement that "substantial and sustainable" sign of economic growth are absent. And so, another further monetary policy easing maybe be "warranted fairly soon". The FOMC meeting minutes also showed that many voting members believed that additional easing would be likely needed soon unless there is a significant improvement in the economy. It was a sharp contrast to June's minutes where only a few member saw the need for further easing.
This was evidenced with the huge bearish bar formed in yesterday's trading day. I have closed this position with small profit to prevent further losses since the market sentiment now is bearish on USD. Please see the charts below before and after.
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| USDJPY - Daily chart (before) |
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| USDJPY - Daily chart (after) |
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