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 remains depressed but off daily lows

The EUR/USD pair is recovering from a daily low of 1.1216, although holding in negative territory for the day. US preliminary Michigan Consumer Sentiment Index improved by less-than-anticipated in July, coming in at 98.4 vs. the 98.5 expected.

EUR/USD News

GBP/USD trading marginally lower daily basis but above 1.2500

The Pound gave back some of its Thursday’s gain on dollar’s relief. The GBP/USD pair broke a daily descendant trend line coming from June’s high and holds above it, leaving little room for sellers to act.

GBP/USD News

USD/JPY: bears pausing, still in control

Japanese National Inflation steady at 0.7%YoY in June. US Michigan Consumer Sentiment Index expected at 98.5 in July. USD/JPY corrective advance falling short of signaling an interim bottom in place.

USD/JPY News

Gold consolidates around $ 1440, eyes US data for fresh direction

Gold (futures on Comex) extends its side-trend around the 1440 mark into the mid-European session, having stalled its retreat from 2019 highs of 1454 near 1437 region.

Gold News

Something has spooked the Fed

We wish we knew what it is. Wild talk of the US joining Japan and Europe with zero or negative return on the 10-year is or should be very frightening.

Read more

MAJORS

Cryptocurrencies

Signatures


  •  
  •  
  •  
  •  
  •