USD/JPY surge suffers due to Fed

Note: This section contains information in English only.
Source: Dukascopy Bank SA


The United States Federal Reserve announced its Federal Funds Rate. Markets expected the Fed to keep the base interest rate unchanged at 5.50%. The Fed has done exactly that. However, the US Dollar declined on the announcement, as the market participants must have seen this as a relief from possible rate hike. Namely, inflation has shown to be persistent in the US and a rate hike was a possibility. After the event, the Chairman of the Federal Reserve Jerome Powell revealed at the follow up press conference that not one but three rate cuts are possible in 2024. These news caused a drop of the Dollar that continued overnight. The Dollar index reached a slow as 102.90, where it found support.

On the USD/JPY charts t resulted in a decline to the 150.50 level. Prior to the events, the USD/JPY had almost reached the 152.00 mark. On Thursday, it appeared that the surge is resuming.

In regards to resistance, the 151.50 level is keeping the pair down. Higher above, the 152.00 mark and the combination of the 152.50 level and the weekly R3 simple pivot point are expected to act as resistance.

On the other hand, a decline of the USD/JPY has to pass below the support of the 150.50/151.00 range and the weekly R2 simple pivot point at 150.89. Further below, note the ascending 100-hour simple moving average, the weekly R1 simple pivot point at 149.94 and the 150.00 mark.
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