• Fed maintains interest rates; projects higher rates through 2024 with a federal funds rate adjustment to 5.10%.
  • Cooler US inflation report pressures the Greenback, leading to a decline in USD/JPY.
  • Fed's economic outlook: Stable growth at 2.1%, steady unemployment at 4%, with minor hikes in PCE and Core PCE inflation rates.

The USD/JPY retreated on Wednesday after the Federal Reserve's decision to keep interest rates unchanged while tilting slightly hawkish as Fed officials upward revised the federal fund's rates. However, a cooler-than-expected US inflation report weighed on the Greenback ahead of Fed Chair Jerome Powell's presser. The major trades at 156.26, down 0.55%.

USD/JPY drops 0.55% amid Fed's hawkish hold, cooler US inflation report

The Federal Reserve’s monetary policy statement highlighted that Fed officials do "not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent." They also stated that "the Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee’s goals."

Meanwhile, the Summary of Economic Projections (SEP) revealed that policymakers tilted slightly hawkish, as the median foresees the federal funds rate to end at 5.10% in 2024, up from 4.60% in March’s projections. The economy is expected to grow 2.1%, consistent with their March forecast, while the unemployment rate is projected to remain at 4%, unchanged from the previous SEP. PCE inflation is expected to rise slightly from 2.4% to 2.6%, and Core PCE inflation is projected to increase from 2.6% to 2.8%.

USD/JPY Reaction to Fed’s Decision - Hourly Chart

The USD/JPY bounced off daily lows at around 155.80 and edged above the 156.00 figure, but it was capped by the 100-Simple Moving Average (SMA) at 156.55. For buyers to extend its gains, they must clear the 100-SMA, and test the bottom of the Ichimoku Cloud at around 156.80/95. Further gains are seen above 157.00.

USD/JPY

Overview
Today last price 156.39
Today Daily Change -0.73
Today Daily Change % -0.46
Today daily open 157.12
 
Trends
Daily SMA20 156.42
Daily SMA50 155.23
Daily SMA100 152.39
Daily SMA200 149.93
 
Levels
Previous Daily High 157.4
Previous Daily Low 156.81
Previous Weekly High 157.47
Previous Weekly Low 154.55
Previous Monthly High 157.99
Previous Monthly Low 151.86
Daily Fibonacci 38.2% 157.18
Daily Fibonacci 61.8% 157.03
Daily Pivot Point S1 156.82
Daily Pivot Point S2 156.51
Daily Pivot Point S3 156.22
Daily Pivot Point R1 157.42
Daily Pivot Point R2 157.71
Daily Pivot Point R3 158.01

 

 

Share: Feed news

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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

XM
Account
7.2
Tools
9.2
Service
9.4
Trading
9.0
Trust
7.0
Experience
8.4
Read review
Moneta Markets
Account
7.4
Tools
6.6
Service
8.0
Trading
6.6
Trust
5.2
Experience
9.2
Read review
Trading Pro
Account
7.2
Tools
5.2
Service
6.6
Trading
8.0
Trust
5.0
Experience
7.0
Read review
Pepperstone
Account
8.2
Tools
8.2
Service
7.4
Trading
9.0
Trust
8.8
Experience
9.0
Read review
XM
Read review
Moneta Markets
Read review
Trading Pro
Read review
Pepperstone
Read review
Trading Pro
Read review
Pepperstone
Read review
XM
Read review
Moneta Markets
Read review
Trading Pro
Account
7.2
Tools
5.2
Service
6.6
Trading
8.0
Trust
5.0
Experience
7.0
Read review
Pepperstone
Account
8.2
Tools
8.2
Service
7.4
Trading
9.0
Trust
8.8
Experience
9.0
Read review
XM
Account
7.2
Tools
9.2
Service
9.4
Trading
9.0
Trust
7.0
Experience
8.4
Read review
Moneta Markets
Account
7.4
Tools
6.6
Service
8.0
Trading
6.6
Trust
5.2
Experience
9.2
Read review

Recommended content


Recommended content

Editors’ Picks

Gold hovers around all-time highs near $3,250

Gold hovers around all-time highs near $3,250

 

Gold is holding steady near the $3,250 mark, fuelled by robust safe-haven demand, trade war concerns, and a softer-than-expected US inflation gauge. The US Dollar keeps trading with heavy losses around three-year lows.

Gold News
EUR/USD retreats towards 1.1300 as Wall Street shrugs off trade war headlines

EUR/USD retreats towards 1.1300 as Wall Street shrugs off trade war headlines

The EUR/USD pair retreated further from its recent multi-month peak at 1.1473 and trades around the 1.1300 mark. Wall Street manages to advance ahead of the weekly close, despite escalating tensions between Washington and Beijing and mounting fears of a US recession. Profit-taking ahead of the close also weighs on the pair. 

EUR/USD News
GBP/USD trims gains, recedes to the 1.3050 zone

GBP/USD trims gains, recedes to the 1.3050 zone

GBP/USD now gives away part of the earlier advance to fresh highs near 1.3150. Meanwhile, the US Dollar remains offered amid escalating China-US trade tensions, recession fears in the US, and softer-than-expected US Producer Price data.

GBP/USD News
Bitcoin, Ethereum, Dogecoin and Cardano stabilze –  Why crypto is in limbo

Bitcoin, Ethereum, Dogecoin and Cardano stabilze –  Why crypto is in limbo

Bitcoin, Ethereum, Dogecoin and Cardano stabilize on Friday as crypto market capitalization steadies around $2.69 trillion. Crypto traders are recovering from the swing in token prices and the Monday bloodbath. 

Read more
Is a recession looming?

Is a recession looming?

Wall Street skyrockets after Trump announces tariff delay. But gains remain limited as Trade War with China continues. Recession odds have eased, but investors remain fearful. The worst may not be over, deeper market wounds still possible.

Read more
The Best brokers to trade EUR/USD

The Best brokers to trade EUR/USD

SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.

Read More

Forex MAJORS

Cryptocurrencies

Signatures

Best Brokers of 2025