USD/JPY: consolidating on 112 handle post FOMC

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 17, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    USD/JPY has consolidated the downside f the FOMC surprise doltishness below the 100 4hr sma at 113.26 after making lows of 112.32.

    Fed keeps rates unchanged as expected, lowers rate hike expectations

    The outcome has countered the BoJ's own dovishness and left the greenback on the back foot for the foreseeable future while April looks like it is off the table as and June the most probable next targeted month for a rate hike while the dot plot leaves the outlook for 2016 just 2 hikes at a half a point rate rise opposed tot he full 1% expected at the end of the Dec FOMC meeting.

    USD/JPY levels

    Valeria Bednarik
    , chief analyst at FXStreet explained that in the 1 hour chart, the technical indicators head south almost vertically, despite being in extreme oversold territory. "In the 4 hours chat, and after a period of consolidation around their mid-lines, the technical indicators resumed their declines, now heading sharply lower within bearish territory. Former lows around 112.60 are the immediate resistance, yet at this point, only a recovery above 113.00 will take out some of the bearish pressure from the pair. "
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