- USD / JPY rises after the Fed announced a faster QE decline.
- Based on the dot plot projections, Fed members anticipate three rate hikes in 2022.
The USD / JPY recovered the figure of 114.00 as the Fed decided to keep rates in the range of 0 to 0.25% while increasing the speed of reduction of bond purchases. Also, based on the dot plot, projections estimate at least three rate increases in 2022.
US bond yields are increasing in the market, with the 10-year yield advancing two basis points, standing at 1.46%, while the US dollar index is up 0.11%, to 96.68.
USD / JPY reaction
USD / JPY reached a daily high near 114.30. However, the bullish movement faded with Powell’s appearance.
On the upside, the next resistance would be the October 20 high at 114.70, followed by 115.00.
On the downside, the first support would be the 50 DMA at 113.75, followed by the December 10 low at 113.21.
Technical Levels
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