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USD/JPY: solid on the bid after FOMC lift-off

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 17, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Guatemala) - USD/JPY is very quiet in the Tokyo open and has the 200 DMA and 100 DMA has come together offering a potentially strong level of support after the Fed hiked rates and Yellen is confident that more of the same will come in 2016 so long as the slack in the market tightens up and inflation continues towards their target.

    " It may be that the statement's focus on gradual moves and “the current shortfall of inflation from 2 percent” was the necessary requirement to prevent dissension from the likes of Brainard, Evans and Tarullo. Indeed the unanimous vote came despite 2 of the “dots” for end-2015 remaining at 0.0-0.25%. Overall, the Fed's decision is likely to play USD-positive into 2016," - explained analyst at Westpac.

    USD/JPY levels

    Technically, Valeria Bednarik, chief analyst at FXStreet explained, " In the 1 hour chart, the price is now advancing above its 200 SMA for the first time in over a week, while the technical indicators present a strong upward momentum, heading north almost vertically. In the 4 hours chart, the Momentum indicator heads higher well above the 100 level whilst the RSI indicator also aims north around 60, in line with further advances towards the 123.00 figure, particularly on a break above the mentioned resistance. "
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