USD/JPY rises to test daily highs after FOMC statement
- US dollar mixed after the release of the Fed’s monetary policy decision.
- USD/JPY holds in positive territory for the day, little changed.
The USD/JPY pair rose from 109.15 to 109.24, slightly below Asian session highs following the decision of the Federal Reserve (Fed) to keep the key interest rate unchanged. Price action remained limited across financial markets.
The FOMC statement contained two minor changes compared to the previous one. One of them is they see household spending rising at a “moderate” pace (changed from “strong”). Market participants now await Chair Powell’s press conference.
The move higher in USD/JPY after Fed’s meeting failed to break above 109.25. As of writing, it is holding near the peak, but the decline in US yields limits the upside. The 10-year yield fell to 1.61%, hitting a fresh daily low.
Levels to watch
A break above 109.25 should strengthen the US dollar. The next resistance levels might lie at 109.45 and 109.55. On the flip side, below 109.10 (intraday support / 20-hour SMA) some bearish pressure is expected to emerge exposing the daily low at 108.96. The key support is the 108.70/75 area.