Swiss Franc bulls were heartened by the move back to close the day at 1.3105, but the failure to break below 1.3080 against the US Dollar will have made traders cautious. A move below 1.3080 would have fx traders looking for a drop of some 50 pips to test the support at 1.3030. Any close below this level would have traders looking for a drop to perceived support at 1.2925. US Dollar bulls will have taken heart by the failure to get below 1.3080 and will be looking for a move back to test resistance levels at 1.3155 1nd 1.3195 before trying to breach the 2006 high trade at 1.3235.
The Japanese Yen will be subject to end of Fiscal Year machinations, quite apart from any reaction to FOMC action. While a trading range of 116.50 to 118.50 seems to be a cowards range, it would need something extraordinary to push the currency outside of this range with so much book squaring going on. If by any chance we were to break out of this range, a move of 100 pips outside is about the limit. I would not expect any more than that, as it would take us outside of the range of the last two months. Much of the attention of the Asian markets will be focused on how the Chinese authorities react to the pressure of the US to give the Yuan more freedom to appreciate in the forex market.

The Canadian Dollar at a disappointing 1.1685 against the US Dollar despite a better day for Gold and the jump the previous day of oil. A sustained move above 1.1700 testing the recent high trade at 1.1720 may be needed to flush out the weak loonie bulls. A close above this level would have traders looking to beat the 18th January spike at 1.1795. Canadian Dollar bulls would not get really interested until we saw prints with a 1.14 handle.