USD/JPY chart on Trading View used for analysis
- USD/JPY is extending downside despite Fed delivering a hawkish rate decision overnight.
- The Fed raised interest rates by 25 basis points yesterday as expected, but signaled that it could hike rates two times in 2019.
- Despite the hawkish Fed, the 10-year yield remains near the seven-month low of 2.76 percent.
- USD/JPY edged higher from session lows at 112.09 post Fed rate decision, but the bounce lacked follow-up and was short-lived.
- The major is trading 0.16% lower on the day at 112.28 at the time of writing.
- Price action largely muted to BoJ which left policy unchanged, as widely expected.
- The central bank also made no changes to the forward guidance, adopted in July that pledges to keep interest rates extremely low for an extended period.
- Technical indicators maintain their bearish strength. The pair has shown a breach at 'Symmetric Triangle' base raising scope for further downside.
- We see scope for test of 200-DMA at 110.85 on break below 23.6% Fib. Bearish invalidation only above 113.85 (Triangle top)
Support levels - 112.20 (23.6% Fib), 111.37 (Oct 26 low), 110.88 (200-DMA), 110.76 (38.2% Fib)
Resistance levels - 112.69 (5-DMA), 113 (nearly converged 21-EMA and 50-DMA), 113.85 (Triangle top)
Recommendation: Good to go short on break below 112 handle, SL: 112.70, TP: 111.40/ 111/ 110.90/ 110.75
For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.


Trump’s "Shock and Awe" Agenda: Executive Orders from Day One
Mexico's Undervalued Equity Market Offers Long-Term Investment Potential
Oil Prices Dip Slightly Amid Focus on Russian Sanctions and U.S. Inflation Data
Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed
Moldova Criticizes Russia Amid Transdniestria Energy Crisis
U.S. Treasury Yields Expected to Decline Amid Cooling Economic Pressures
Stock Futures Dip as Investors Await Key Payrolls Data
Indonesia Surprises Markets with Interest Rate Cut Amid Currency Pressure
Bank of America Posts Strong Q4 2024 Results, Shares Rise 



