USD/JPY drops to test 108.00 as Fed sends US Dollar to the downside


  • US Dollar tumbles across the board after Federal Reserve hints at a possible rate cut. 
  • USD/JPY hits multi-day lows but so far remains above 108.00.

The USD/JPY pair fell from 108.35 to 108.02, reaching the lowest level since June 7 after the FOMC meeting. The move lower was triggered by a decline of the US Dollar across the board and also amid a rally in Treasuries. 

The pair so far managed to remain on top of 108.00 but it continues to be under pressure. A break lower would expose June lows around 107.80. On the upside, now 108.50 has become a barrier that protects the weekly highs around 108.75. 

The FOMC decided to leave rates unchanged. James Bullard voted against the decision and asked for an immediate rate cut. In the statement, the central bank signaled that it could cut rates over the next months if the economic outlook worsens. The move was seen as a shift to a dovish stance by market participants and pushed the US Dollar to the downside. Now trades await Powell’s press conference. 

Technical Levels

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD advances 1.10 amid upbeat trade headlines, after mixed US retail sales

EUR/USD is trading closer to 1.1050, up on the day. US Commerce Secretary Ross has expressed optimism about reaching a deal with China. The Retail Sales Control Group met expectations with 0.3%.

EUR/USD News

GBP/USD soars past 1.2900 as Farage gives additional boost to Conservatives

GBP/USD has leaped above 1.29, the highest since early November, as the Brexit Party has failed to field candidates in 43 additional seats, facilitating a victory for PM Boris Johnson.

GBP/USD News

USD/JPY clings to gains near session tops, around 108.70 post-US data

The USD/JPY pair maintained its strong bid tone near session tops and had a rather muted reaction to the mixed US economic data.

USD/JPY News

Gold looks to close week with small gains below $1,470

The precious metal struggled to find demand on Friday as the upbeat market mood on renewed hopes of the United States and China reaching a trade deal to avoid a tariff hike in December caused investors to move away from safe havens.

Gold News

Crypto Today: Playing with the thin red line

BTC/USD has fallen below $8,500 during the Asian trading session. A close below this support level would put $7,500 on the trading table. ETH/USD is moving below the 50-period exponential moving average.

Read more

Forex MAJORS

Cryptocurrencies

Signatures