- USDJPY continues to be driven by global safe haven flows.
- Fear is rising thanks to emerging markets - will FOMC make worse?
Volatility has remained high over the course of the morning as tension in emerging market currencies continues to lash out. Calm has started to descend in the hours leading up to the Federal Reserve meeting, however, as traders look to take cues from the most important insitution on the planet on Wednesday.
Both the EURUSD and the USDJPY are facing key technical levels that have been previously identified as potential inflection points in the market. With the catalyst for all of the recent volatility set to mature (the Fed's QE3 tapering plans), opportunities could be plentiful in the various USD-crosses.
--- Written by Christopher Vecchio, Currency Analyst
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