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20 Jun 2013
USD/JPY piercing descending trend line
FXstreet.com (London) - USD/JPY spiked higher after the release of the FOMC overnight, breaching major resistance levels.
USD/JPY reacts to FOMC
Last night came the release of FOMC, when the market listened to the committee’s statement. While there were no changes to the current pace of QE, a comment was made as follows: "the downside risks to the outlook for the economy and the labor market as having diminished since the fall”, which sent the market in a ‘risk-off’ flurry again in broad based dollar rally. In all, the statement was a little more upbeat on the economy but showed little concern about inflation, except there being a more upbeat unemployment rate which might bring in a rate hike in a little closer. Earlier on, Japan’s leading economic index ticked up to 99.0 from a previous 97.7, offering yet more improvements in the economy.
USD/JPY piercing descending trend line
After the release of the FOMC, the USD/JPY pierced a significant level to the upside which was the trend line determining the recent bearish channel. With that area now well breached, the pair can continue higher with it now acting as a support area, 96.80 and 95.40. The upside move is targeting 98.80, for a close above 99.00 and to reach the psychological 100.00 the June highs.
USD/JPY reacts to FOMC
Last night came the release of FOMC, when the market listened to the committee’s statement. While there were no changes to the current pace of QE, a comment was made as follows: "the downside risks to the outlook for the economy and the labor market as having diminished since the fall”, which sent the market in a ‘risk-off’ flurry again in broad based dollar rally. In all, the statement was a little more upbeat on the economy but showed little concern about inflation, except there being a more upbeat unemployment rate which might bring in a rate hike in a little closer. Earlier on, Japan’s leading economic index ticked up to 99.0 from a previous 97.7, offering yet more improvements in the economy.
USD/JPY piercing descending trend line
After the release of the FOMC, the USD/JPY pierced a significant level to the upside which was the trend line determining the recent bearish channel. With that area now well breached, the pair can continue higher with it now acting as a support area, 96.80 and 95.40. The upside move is targeting 98.80, for a close above 99.00 and to reach the psychological 100.00 the June highs.