Regardless of the outcome of the Fed meeting, USDJPY is likely to see substantial volatility. After surging to a new six-year high above 107.00 last week, rates have consolidated in a tight 55-pip range for the last four days.
Oil rallied further after the leaked Fed story. Apparently the Fed did not want the market thinking that rates were going up anytime soon so they dropped a dime to their buddy Jon Hilsenrath at the Wall Street Journal.
The oil market got heavy as word of a possible story of a Fed exit, which started to permeate the trading floor on Friday. The other issue is oil going down to the Gulf Coast and whether our production boom will overwhelm the refineries.