USD/JPY: targetting the highs and 114 handle following FOMC


  • USD/JPY has popped higher on the FOMC.
  • USD/JPY has started to bleed a little following the FOMC whereby the Federal Reserve has left rate on hold at 2.00-2.25% as expected. 

USD/JPY has been better bid as G10FX continues to chop higher in dollar terms post the midterm elections while US stocks continue to elevate the EURJPY cross and dollar higher. USD/JPY remains buoyant with a risk on mood while Wall Street went bid on the results. The pair has been rising from 113.47 early to 113.69 overnight, falling  just shy of yesterday's 113.82 spike. Today, the pair has kept up the momentum and bulls target the 114 handle following the FOMC while U.S. yields remain firm again, although holding below recent highs, with ten-year Treasuries above 3.22%. 

FOMC key takeways:

  • Economic activity rising at strong rate; growth of business fixed investment has moderated from its rapid pace earlier in the year.
  • Inflation remains near 2%, l-term inflation expectations little changed.
  • Expects further gradual hikes to be consistent with sustained economic expansion, strong jobs market and inflation objective.
  • -Repeats near-term risks to the economy appear ‘roughly balanced.

USD/JPY levels

Analysts at Commerzbank explained that USD/JPY remains bid and they look for further gains to the 114.74 recent high. 

"Above 114.74 would target 118.66, the December 2016 high. The market is underpinned by the 55 day ma (112.40) and cloud support (112.93/15). Only failure at the cloud support (112.15) would target the 109.77/110.00 200 day ma and August low. Where are we wrong? If the 109.77 level were to give way (August low), the June 8 low at 109.20 would be in focus. Failure there would imply a slide back to the 108.12 May 29 low and the mid-February high at 107.91."

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 flirts with 1.1100 as the dollar loses steam

The EUR/USD pair bounced from a daily low of 1.1065, as demand for the greenback receded during US trading hours. Upside caped for the shared currency amid fears of a German recession, Italian political turmoil.

EUR/USD News

GBP/USD pressures recent highs amid renewed Brexit hopes

Comments from German Chancellor Merkel gave the Pound a lift, as somehow she hinted that the EU would consider an alternative to the Irish backstop.

GBP/USD News

USD/JPY slides to 106.30 area as US T-bond yields turn south

10-year US Treasury bond yield erases Monday's recovery gains. US Dollar Index preserves strength to limit pair's losses. Risk sentiment is likely to continue to drive pair's action.

USD/JPY News

Gold retreats from daily highs, continues to trade above $1,500

The XAU/USD pair took advantage of the risk-off flows earlier in the day and erased a large portion of the losses it suffered on Monday. After touching a daily high of $1,508.45, however, the precious metal lost its strength and edged lower toward the $1,500 handle. 

Gold News

Top 3 Price Prediction Bitcoin, Ripple, Ethereum: Planning the next bullish move after consolidating gains

Trading cryptos is not a one-way street – meteoric unstoppable gains belong to the past. Nevertheless, the bullish sentiment seems to prevail. Digital coins advanced on Monday and are consolidating on Tuesday. 

Read more

MAJORS

Cryptocurrencies

Signatures


  •  
  •  
  •  
  •  
  •