USD/JPY pops 20 pips on the as expected Fed

  • Fed doesn't suppose and Dollar slightly bid.
  • BoJ policy is set to remain on hold this week.

USD/JPY is currently trading at 108.32 following the FOMC, travelling between 108.08 and 108.33 but is virtually flat on the day as the Fed lowered rats as expected by 25 basis points. 

The Fed funds target rate was lowered to 1.75%-2.00% while the prior Fed funds rate was 2.00%-2.25%. The statement repeated that economic activity is rising at a moderate rate and that the labour market remains strong with inflation running below 2%.

The market was well and truly prepared for the outcome and instead looked to forwarding projections.  The 2019 dot plot came down to 1.9% in 2019 and they see 1.9% in 2020 and 2.1% at the end of 2021. 

USD/JPY could be headed towards the 105.00 area on a 3 month

Meanwhile, this week the BoJ will hold its regular policy meeting. Speculation is building that although policy is set to remain on hold this week, that the BoJ may be prepared to lower short-term rates further into negative territory in the coming months

"In spite of periodic bouts of safe haven demand for the JPY, the fact that Japan’s effective exchange rate is still trading only modestly above multi-decade lows does imply that the BoJ’s extremely lose policy conditions has had an impact on softening domestic monetary conditions," analysts at Rabobank explained, adding, "That said, in recent months USD/JPY has been biased lower mirroring a reduced level of risk appetite. Given the current geopolitical risks in addition to the slowdown in world growth, we see risk that USD/JPY could be headed towards the 105.00 area on a 3 month view."

USD/JPY levels


Today last price 108.13
Today Daily Change 0.02
Today Daily Change % 0.02
Today daily open 108.11
Daily SMA20 106.83
Daily SMA50 107.12
Daily SMA100 108.05
Daily SMA200 109.38
Previous Daily High 108.37
Previous Daily Low 108.02
Previous Weekly High 108.26
Previous Weekly Low 106.76
Previous Monthly High 109.32
Previous Monthly Low 104.45
Daily Fibonacci 38.2% 108.16
Daily Fibonacci 61.8% 108.24
Daily Pivot Point S1 107.97
Daily Pivot Point S2 107.82
Daily Pivot Point S3 107.62
Daily Pivot Point R1 108.32
Daily Pivot Point R2 108.52
Daily Pivot Point R3 108.67




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 holds onto 1.10 ahead of US inflation, Powell's testimony

EUR/USD is consolidating its losses above 1.10 as markets await US CPI and Fed Chair Powell's all-important testimony on Capitol Hill. Concerns about US-Sino relations weigh on markets.


GBP/USD struggles around 1.2850 after weak UK CPI, amid election speculation

GBP/USD is trading around 1.2850, as UK opinion polls are showing contradictory results. UK CPI fell to 1.5% in October, worse than expected and weighing on the pound.


USD/JPY: Market seeks for safety ahead of Powell

Equities are under pressure ahead of Powell and after a disappointing Trump’s speech. US inflation seen posting a modest advance in October, steady at 2.4% YoY. USD/JPY at weekly lows, decline to steepen on a break below 108.65.


Gold sticks to gains near $1,460 ahead of CPI, Powell

The once troy of the yellow metal is up marginally early in the European trading hours, navigating the area below $1,460 amidst a better mood in the dollar and the generalized offered tone in the safe havens.

Gold News

Cryptocurrencies: Libra launches crypto-space arms race

Facebook’s Libra project has sparked a race for a cake valued at $80.14 trillion (world GDP). Tunisia was the first to enter the world of digitized currencies, China will not be the last.

Read more