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19 Mar 2015
USD/JPY: Breaking 120 support again
FXStreet (Guatemala) - USD/JPY is currently trading with a high of 120.30 in the tokyo open and a low of 120.01 in Asia post a battering to 119.28.
USD/JPY is starting to lose the 120 handle again having scurried back ground lost right down to the overnight lows of 119.24 on the back of the major supply in the greenback post the FOMC announcements overnight. Failures further and a convincing break of the 120 handle again, opens up the recent low and then the 16th Feb low at 118.11.
The Fed left the policy unchanged as expected, but left the door open for a rate cut in June. They also left out the wording “patient". Amongst that, the Fed have downgraded the outlook for and said, “economic growth has moderated somewhat” in the opening line of the statement as noted by James Knightley, analyst at ING Bank. "Later on it added that the FOMC want to see “further improvement in the labour market” and wants to be “reasonably confident that inflation will move back to its 2% objective over the medium term”."
"Indeed, with the Fed now judging whether to raise rates on a meeting-by-meeting basis we continue to favour theJune 17 FOMC meeting as the date for the first rate move."
USD/JPY is starting to lose the 120 handle again having scurried back ground lost right down to the overnight lows of 119.24 on the back of the major supply in the greenback post the FOMC announcements overnight. Failures further and a convincing break of the 120 handle again, opens up the recent low and then the 16th Feb low at 118.11.
The Fed left the policy unchanged as expected, but left the door open for a rate cut in June. They also left out the wording “patient". Amongst that, the Fed have downgraded the outlook for and said, “economic growth has moderated somewhat” in the opening line of the statement as noted by James Knightley, analyst at ING Bank. "Later on it added that the FOMC want to see “further improvement in the labour market” and wants to be “reasonably confident that inflation will move back to its 2% objective over the medium term”."
"Indeed, with the Fed now judging whether to raise rates on a meeting-by-meeting basis we continue to favour theJune 17 FOMC meeting as the date for the first rate move."