Institution: Japan may face a dilemma of foreign exchange intervention on the eve of the Fed's decision.

StoneX's Matt Simpson commented that before the announcement of the Federal Reserve decision today, Japan may face a dilemma of foreign exchange intervention. The senior market analyst said, "With the US dollar index approaching its March high and speculators entering bullish US dollar positions at the fastest rate in six years, the somewhat hawkish [Federal Open Market Committee meeting] outcome could be the catalyst for a new round of USD/JPY breakthrough." Simpson added, "This breakthrough will put the Japanese Ministry of Finance in a difficult position: intervene in the strengthening US dollar and risk going against market momentum, or stand by and watch the USD/JPY further deepen into the region that prompted intervention before."