USD/CAD extending scope of projections

USD/JPY is seen posting moderate losses at Tokyo-open and hovers around 123.50 levels, as the greenback extends correction from seven-month peaks against its major competitors. The major, however, manages to trade well above post-FOMC minutes low reached at 123.38, as the divergent monetary policy outlook between both the Fed and BOJ continue to favour the upside in USD/JPY. Although the FOMC minutes offered no new surprises overnight, the document did reveal that the Fed remains on track to raise interest rate next month, while such a move is expected to be data-dependent.