USD/JPY hits fresh lows under 108.60 as Fed keeps rates on hold
- US central bank kept monetary policy unchanged after three rate cuts.
- Next event: Chairman Powell press conference.
- US yields and dollar hit fresh lows despite signs of no change in rates next year.
The USD/JPY pair initially rose to 108.76 and the reversed falling to 108.57, the new daily low following the decision of the Federal Reserve to keep rates unchanged. As of writing trades at 108.60/65, marginally lower compared to the level it had before the statement.
The greenback fell across the board hitting fresh daily lows. The US Dollar Index dropped under 97.30, the lowest level since November 4. US yields moved to the downside and equity prices in Wall Street rose but remain under the highs.
Fed signals no changes in 2020
The Fed kept rates unchanged after three consecutive rate cuts. In the final meeting of the year, the central bank signaled it would keep the current monetary policy stance for some time. The new projections showed FOMC members see no change in rates next year. Chairman Powell is about to deliver a press conference.
The greenback weakened despite the signals from the central banks. Probably a “buy the rumor, sell the news” phenomenon drove the US dollar lower.
Technical levels
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
