Dollar’s post-FOMC strength continues to overwhelm the markets today. Though, Yen is also catching up as US futures point to a weak open. Selling in commodity Yen crosses is also helping the Japanese currency. Swiss Franc is currently the worst performing, as SNB sounded it’s fully in inertia despite better growth and inflation outlook. Kiwi and Aussie are the worst performing, but Euro and Sterling are not too far away.

Technically, Dollar strength should be cleared with EUR/USD’s firm break of 1.2 handle. The question now is, when the greenback would continue to lead the Yen. Or, Yen would eventually overtake as risk aversion intensifies. USD/JPY is now facing 110.95 resistance. Decisive break there will resume larger rise from 102.58 and solidify Dollar’s place as winner. Rejection by 110.95, followed by break of 109.79 support, however, would suggests that USD/JPY is extending the consolidation form 110.95 with another fall. That would be a signal of deeper selloff in Yen crosses on risk aversion.

In Europe, at the time of writing, FTSE is down -0.62%. DAX is down -0.05%. CAC is down -0.13%. Germany 10-year yield is up 0.0203 at -0.227. Earlier in Asia, Nikkei dropped -0.93%. Hong Kong HSI rose 0.43%. China Shanghai SSE rose 0.21%. Singapore Strait Times dropped -0.04%. Japan 10-year JGB yield rose 0.016 to 0.066.

Source: www.actionforex.com