USD/JPY: where next, all the way to 114 handle on hawkish Fed, dovish BoJ today?

Ross J Burland FXStreet

Currently, USD/JPY is trading at 112.55, up 0.30% on the day, having posted a daily high at 112.66 and low at 112.18.

Tokyo is maintaining the better bid theme for the major as seen overnight's FOMC event.

USD/JPY spiked to 111.99, the initial high post FOMC announcements. However, the dollar picked up further demand as the market digested the FOMC as slightly more hawkish than expected, announcing that there should be four more hikes before 2019, including one further hike this year.

FOMC main takeaways:

The Federal Reserve left rates in the 1.00%-1.25% range.
The Fed announced that it will begin to unwind of $4.5 trillion balance sheet in October.
Hurricanes unlikely to affect the medium-term path of the economy.

Next in focus is the BOJ meeting:

BOJ Preview: As Low a Risk Event as it Gets

(Note: BoJ Gov Kuroda will hold a press conference at 02.30ET)

USD/JPY levels

With closes above 111.75, a 61.8% fibo level, eyes are now on the wide towards 114.38/49. To the downside, and below 111.20, 110.95/20 has been a previously supportive range. 110.62 is the daily cloud base ahead of the previous downtrend at 109.13 before the 108.13 April low and the recent low at 107.32.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

EUR/USD shifts its attention to 1.1900 and above

EUR/USD has shaken off Tuesday’s dip, pushing back beyond the 1.1800 mark amid decent gains as Wednesday’s session draws to a close. The rebound is largely driven by a modest pullback in the US Dollar, as markets digest the aftermath of President Trump’s SOTU speech and continue to monitor trade-related headlines and signals from the White House.

GBP/USD challenges multi-day highs near 1.3530

GBP/USD leaves behind the previous day’s decline and regains fresh upside traction on Wednesday, surpassing the 1.3500 barrier in a context of a modest decline in the Greenback and a generalised improved mood in the risk-linked space. Meanwhile, the US tariff narrative continues to dictate the mood among market participants after Presidet Trump’s SOTU speech failed to surprise markets.

Gold remains bid and close to $5,200

Gold buyers are returning to the fold on Wednesday, targeting the $5,200 area and possibly beyond, after Tuesday’s corrective dip from monthly highs. The rebound in the precious metal comes as the US Dollar loses traction, with Trump’s SOTU speech offering little fresh direction and AI-related nerves continuing to ease.

UK financial watchdog advances stablecoin oversight as four firms pilot issuance

The Financial Conduct Authority (FCA) in the United Kingdom (UK) is advancing toward the final stablecoin regulatory framework with a pilot program involving four companies, including Monee, Financial Technologies ReStabilise, Revolut and VVTX.

Nvidia earnings to influence AI trade and broader market sentiment

For the last three years, Nvidia has been the engine of the AI boom, and now Wall Street is watching to see whether that momentum can keep going. High-growth stocks have been struggling to maintain their bullish trend in 2026.

Cosmos Hub Price Forecast: ATOM rebounds slightly, bearish outlook remains intact

Cosmos Hub (ATOM) price rebounds, trading above $2.05 at the time of writing on Wednesday, after undergoing a sharp correction since last week. Weakening on-chain and derivatives data support a bearish outlook, while technical analysis remains unfavorable.