USDJPY relinquished after Fed minutes shows dovish tilted signal.
“Fed minutes shows possible slowdown in policy tightening, pushing greenback downwards.”
US dollar tumbled across the board soon after Federal Reserve released their latest minutes from November’s meeting. From the minutes, Federal Reserve raised its interest rates by 75 basis points last month to combat rising price of goods across the nation. The minute also shows that Fed officials are satisfied with the move and suggested to stop large increase and move towards smaller actions moving forward. In addition, Fed officials also debate over the risks of rapid policy tightening towards the economy and stability which garnered speculation over a downplay in upcoming policy introductions.
Quick recap on USDJPY
The pair suffered from substantial pullback from its peak with overall trend skewed towards the downside.
USDJPY Weekly Technical Analysis
From weekly perspective, the pair is currently testing near 138.75, a strong support for the time being.
USDJPY Daily Technical Analysis
Recent attempt to recover from low levels were short-lived as bears pushed the pair lower to retest at 138.75.
Trading Idea
ORDER: SELL STOP
ENTRY: 137.40
STOP LOSS: 139.40
Target 1: 135.10
Target 2: 132.60
ZFX Analyst’s Comment
The pair tumbled substantially for the past few sessions while recent rebound attempt was short-lived. This cemented the course for downside tilted move which may be confirmed after a close below the nearest support level.
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