- USD/JPY bears move on Powell’s Fed speech.
- A break of 135.80 opens the risk of a drop below the 133 zone.
The dollar fell on Wednesday after the Federal Reserve Chairman Jerome Powell said the US central bank could slow the pace of interest rate hikes “as soon as December.”
This has boosted the yen and is sending USD/JPY to retrace previous lows. A break at this point could cause a significant change in the pair for the next few days, as illustrated below:
USD/JPY daily chart
USD/JPY is trading behind daily trend lines exposing 135.80.
USD/JPY H4 chart
The bears are embarking on a similar low as is most easily seen in the enlarged chart below:
There will be liquidity here that could lead to a move back to horizontal resistance in the following sessions. As long as the 139 zone holds, the emphasis will remain on the downside. A break of 135.80 opens the risk of a drop towards 133.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
