The USD/JPY has dropped aggressively in the European session and has reached new lows on the short term, right now is very close to hit the 100.00 psychological level again, could find temporary support at this level if the US dollar index will have enough energy to climb higher again, technically the current droop was expected on the short term, but personally I’m waiting for fresh new signal, the rate continues to move sideways on the short term, we have a narrow movement, but I hope that will have a clear direction in the coming days.
The Yen has edged higher in the morning because the Bank of Japan has maintained the BOJ Policy Rate on hold at -0.10%, despite that the specialists have forecasted a drop to -0.20%, the BOJ didn’t made significant changes today, that’s why the Yen has increased sharply versus all its rivals. Unfortunately for the Yen, the Japanese Trade Balance has failed to met the expectations, the trade surplus has increased from 0.34T to 0.41T, but has come in below the 0.50T estimate. The Nikkei stock index has edged higher in the early morning, but the bears have dragged the rate down again, pushing the Yen higher.
The USD/JPY remains lower after the FOMC rate decision, the Federal Reserve delayed once again to hike the rate, matching expectations, the rate remains on hold at 0.50%, we’ll see how the rate will react in the coming hours because right now we have the FOMC Press Conference, which is expected to bring some volatility in the currency market.
The USDX has registered some movement after the FOMC monetary policy decision, personally I’m expecting to see high action in the coming hours and in the morning on all major currency pairs.
A hawkish speech could help the USD to jump higher on the short term, there are some rumors that said that we could see a rate hike in December, but only if the United States economic data will force the FED to take action.

You can see on the Daily chart that the rate has dropped significantly and now is challenging the 50% retracement level, has dropped below this downside obstacle, could approach also the 99,98 static support in the coming hours if the Us dollar index will hit new lows. The major downside support is at the 98.88 level (registered after the Brexit referendum) and also at the lower median line of the medium term descending pitchfork, a failure to reach these level will help the sentiment to change again on the short term. The rate is moving sideways, the behavior has changed, so only the fundamental factors could drive the rate towards fresh new lows, technically the rate is somehow expected to increase in the coming months, but we have to wait for a confirmation.

You can see on the H4 chart that the rate has fallen below the 50% retracement level, but remains to see if this will be a valid breakdown, is trading inside a minor descending channel and could find temporary support around the 100.00 psychological level.

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