Yellen says exit strategy doesn’t mean policy change

• Economy continuing to make progress towards Fed’s goals
• Fed sees progress towards maximum employment
• Sees gradual progression jobs objectives
• Labour market has yet to fully recover
• Sees significant underutilisation of labour resources (usual dovish comment)
• Economic activity expanding at moderate pace, expects pace to continue
• Inflation has firmed since beginning of year
• Sees inflation moving gradually towards objective

The main part the market hasn’t really grasped, though may be now, is the cuts in growth forecasts.
USD/JPY has slipped back towards the break up line at 107.65. If we hold here then we’re likely to move back towards the highs.