The Fed’s hawkish remarks boosted the U.S. greenback throughout the board together with in opposition to the Japanese yen.
Will USD/JPY see a deep sufficient pullback to current a beautiful entry for the pattern merchants?
Right here’s the 1-hour chart zone that we’re :
USD/JPY 1-Hour Foreign exchange Charts by TV
In case you missed the FOMC occasion, you need to know that the Fed paused its rate of interest hikes in September as many had anticipated.
Extra curiously, FOMC members nonetheless see at the very least yet one more charge hike in 2023. Not solely that, however their “dot plot” projections level to an extended interval of high-interest charges.
USD shot up throughout the board on the information and USD/JPY made new September highs.
Does USD/JPY have extra room for good points?
Earlier right this moment, Japan’s Chief Cupboard Secretary Hirokazu Matsuno talked in regards to the significance of currencies “stably reflecting fundamentals” and warned that the federal government is monitoring foreign money strikes “with a excessive sense of urgency.”
Revenue-taking from yesterday’s robust strikes and cautions in opposition to the yen’s sharp losses might encourage profit-taking from USD/JPY’s upswing.
We’re protecting our eyes peeled for a possible pullback to the 147.80 – 148.00 space that strains up with a damaged resistance zone within the 1-hour timeframe.
Take word that the world of curiosity can also be close to the 61.8% Fibonacci retracement of yesterday’s upswing in addition to the 100 SMA on the chart.
Final however not least, a transfer to the 147.80 space could be in step with 1/2 of USD/JPY’s each day common volatility.
We will’t low cost the opportunity of a shallower pullback, nonetheless. If USD/JPY sees bullish candlesticks after which momentum from the 148.10 earlier resistance and 38.2% Fibonacci stage, then you can even take into account coming into a bit early whereas nonetheless aiming for brand spanking new September highs for USD/JPY.
