The Dollar was hurt Tuesday on QE3 speculations and TD securities analysts Shaun Osborne and Greg Moore agree that "it’s all about central bank action these days, so prospects of an easing Fed are crushing the USD broadly, even against the JPY."
"Focus on potential Fed balance sheet expansion compared to a BoJ perceived to be on sidelines should keep the pressure on USD/JPY for now. Of course much will be determined by Thursday’s FOMC statement," TD's analyst point.
"With the pair now trading below the key 78.00 support level though, the BoJ intervention talk is swirling again and Japanese officials have not been afraid to fan those concerns," Osborne and Moore affirm.
"Japanese Finance Minister Azumi reminded investors that at these elevated JPY levels official action could be in the cards," TD Securities concludes.
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