He USD/JPY It has initially reacted to the upside after the publication of the Federal Reserve statement. The pair has risen more than 30 pips to reach a daily high at 103.91, but has subsequently lost momentum, retreating towards the 103.50 zone. At time of writing, the cross is trading above 103.55, shedding 0.06% on the day.
The dollar has been initially favored by the announcement of the Fed, which has communicated that it maintains its interest rates unchanged in the range of 0% to 0.25% and does not change its QE program, whose bond purchase rate continues at 120,000 millions of dollars.
The US central bank has revised its economic projections upwards, estimating that 2020 will close with a contraction of 2.4%, instead of the one forecast in September of 3.7%.
On the technical side, the USD / JPY maintains the downtrend and is close to the support zone between 103.00 and the lows of November. A drop below would point to more declines. The bearish bias is expected to continue as it continues below 105.00 / 20, where it is passing an eight-month bearish line.
Technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
