- USD/JPY rebounds after a sharp drop as Dollar bids recover after the Fed.
- The Fed keeps rates unchanged and warns of uncertainty in the economic outlook.
- Markets are awaiting Fed Chairman Powell's press conference for dovish signs.
The pair USD/JPY rebounded on the charts after the Federal Reserve (Fed) left rates unchanged and warned of the need for a more certain economic outlook and better indicators that US inflation will fall and remain stable at 2% in the future. The Fed sparked a risk-off run that boosted the US Dollar (USD) in reaction, as Markets await further details from Fed Chair Jerome Powell, who will speak at the end of the hour.
The United States Federal Reserve (Fed) has decided not to vary its interest rates at the first monetary policy meeting of 2024 held today, January 31
Money markets are now pricing in a 52% chance of no rate cut in March, while swap rates pivot to focus on the likelihood of a first Fed cut in May, according to CME's FedWatch tool.
USD/JPY Technical Outlook
The USD/JPY fell to the 146.00 area early on Wednesday, retreating 1.22% from daily highs near 147.88.
The pair is returning below the 147.00 zone after the pair tested its lowest prices in almost three weeks.
USD/JPY Hourly Chart
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.
