The Fed’s hawkish remarks boosted the U.S. greenback throughout the board together with towards the Japanese yen.
Will USD/JPY see a deep sufficient pullback to current a gorgeous 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, it is best 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 another 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 positive factors?
Earlier at present, 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 forex strikes “with a excessive sense of urgency.”
Revenue-taking from yesterday’s robust strikes and cautions towards the yen’s sharp losses might encourage profit-taking from USD/JPY’s upswing.
We’re preserving our eyes peeled for a possible pullback to the 147.80 – 148.00 space that traces up with a damaged resistance zone within the 1-hour time-frame.
Take word that the realm 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 can be in step with 1/2 of USD/JPY’s each day common volatility.
We will’t low cost the potential for a shallower pullback, nonetheless. If USD/JPY sees bullish candlesticks after which momentum from the 148.10 earlier resistance and 38.2% Fibonacci degree, then you may also contemplate getting into a bit early whereas nonetheless aiming for brand spanking new September highs for USD/JPY.
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