USD/JPY rebounds above 110.70 after Fed’s minutes

US Dollar rises after FOMC minutes.
USD/JPY finds support at 110.60 and rebounds.

Matías Salord FXStreet

The USD/JPY moved modestly to the upside after the release of the FOMC minutes from the latest meeting. The pair rose from levels near 110.60 to 110.85. It remained below daily high, and the moved higher remove some intraday bearish pressures.

The greenback gained ground across the board following the minutes. According to the document, Fed’s officials saw continued sustained economic expansion, strong labor market demand and inflation near the target. They noted that some downside risks had increased. Most of them agreed that it would be desirable to announce soon a plan to stop reducing the balance sheet later this year. Regarding rates, “several” participants saw further rate hikes appropriate in 2019, if the economy evolves as expected.

Short-term Key Levels to watch

To the downside, the immediate support is the 110.60 area (US session low) and below 110.40/45 (Feb 18 & 19 low) and 110.20. On the upside, resistance might be seen at the daily high at 110.95 followed by 111.10 (Fed high) and 111.50.

USD/JPY

Overview:
    Today Last Price: 110.67
    Today Daily change: 0.06 pips
    Today Daily change %: 0.05%
    Today Daily Open: 110.61
Trends:
    Daily SMA20: 109.92
    Daily SMA50: 110.06
    Daily SMA100: 111.55
    Daily SMA200: 111.31
Levels:
    Previous Daily High: 110.82
    Previous Daily Low: 110.44
    Previous Weekly High: 111.13
    Previous Weekly Low: 109.7
    Previous Monthly High: 110
    Previous Monthly Low: 104.75
    Daily Fibonacci 38.2%: 110.68
    Daily Fibonacci 61.8%: 110.58
    Daily Pivot Point S1: 110.42
    Daily Pivot Point S2: 110.23
    Daily Pivot Point S3: 110.03
    Daily Pivot Point R1: 110.81
    Daily Pivot Point R2: 111.01
    Daily Pivot Point R3: 111.2

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.

EUR/USD accelerates losses, focus is on 1.1800

EUR/USD’s selling pressure is gathering pace now, opening the door to a potential test of the key 1.1800 region sooner rather than later. The pair’s pullback comes on the back of marked gains in the US Dollar following US data releases and the publication of the FOMC Minutes later in the day.

GBP/USD turns negative near 1.3540

GBP/USD reverses its initial upside momentum and is now adding to previous declines, revisiting at the same time the 1.3540 region on Wednesday. Cable’s downtick comes on the back of decent gains in the Greenback and easing UK inflation figures, which seem to have reinforced the case for a BoE rate cut in March.

Gold picks pace, flirts with $5,000

Gold is back on the front foot on Wednesday, shaking off part of the early week softness and pushing higher towards the key $5,000 mark per troy ounce. The move comes ahead of the FOMC Minutes and is unfolding despite an intense rebound in the US Dollar.

Fed Minutes to shed light on January hold decision amid hawkish rate outlook

The Minutes of the Fed’s January 27-28 monetary policy meeting will be published today. Details of discussions on the decision to leave the policy rate unchanged will be scrutinized by investors.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Sui extends sideways action ahead of Grayscale’s GSUI ETF launch

Sui is extending its downtrend for the second consecutive day, trading at 0.95 at the time of writing on Wednesday. The Layer-1 token is down over 16% in February and approximately 34% from the start of the year, aligning with the overall bearish sentiment across the crypto market.