It is hard to explain how the market could be surprised that the Fed was not particularly upbeat at their last meeting in mid-March. After all, they only announced their intention to buy $1.1 trln in additional US mortgage and Treasury bonds…They didn’t do that because they thought it was all good…
Anyway, stocks have pulled back from there highs (now up 0.6%) and EUR.JPY has pulled back sharply. USD/JPY traded down to a fresh session low at 99.35 with the market now nursing stale longs. As downcast as the Fed was on the US economy, they had not much good to say about the international backdrop either.
EUR/JPY trades now 131.83 from 133.15 at the US open and from 132.30 ahead of the minutes.
131.20 is next notable support for EUR/JPY.