USD/JPY tumbles after Trump’s comments on interest rates, eyes 112.00

US dollar tumbles after US President Trump says he’s not thrilled about interest rate hikes.
USD/JPY losses more than 50 pips in a few minutes and hits fresh 2-day lows.

Matías Salord FXStreet

The USD/JPY pair tumbled during the last minutes falling from 112.80 to 112.05 in a few minutes, hitting a 2-day low. Price remains under pressure amid rising volatility and a sharp reversal of the US dollar across the board.

In an interview with CNBC, US President Trump, criticized Fed’s policy for raising interest rates and mentioned he is worry that all his administration is doing will be nullified. Trump’s comments sent the greenback sharply lower. US Dollar Index Futures dropped from 95.20 to 94.65, breaking below yesterday’s low and making a significant reversal after hitting 1-year highs earlier today.

USD/JPY was headed toward the highest close since January before losing more than 50 pips in a few minutes following Trump’s comments. The move could hit the bullish outlook from a technical perspective if current levels are confirmed.

Technical levels

To the downside, support levels might be located at 111.85, followed by 111.35 and 110.90. On the upside, resistance could be seen at 112.20, 112.55 and 112.80 (Jul 13 high).

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.

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