The USD/JPY pair fell to 106.79, its lowest since mid-May, after a dovish US Federal Reserve’s monetary policy announcement and now is struggling with the 107.00 level but bears won’t give up until the pair trades above 107.70, FXStreet’s Chief Analyst Valeria Bednarik briefs.
Key quotes
“The Fed left the federal funds target rate unchanged at 0%-0.25% range, although economic projections indicated that policymakers see rates steady through the next two years.”
“The upcoming American session will bring US Initial Jobless Claims for the week ended June 5, foreseen at 1.55 million and May’s PPI, expected to have slid by 0.1% in the month, and up by 0.4% when compared to a year earlier.”
“USD/JPY is bearish according to the 4-hour chart, developing below all of its moving averages while technical indicators are correcting from oversold readings but remain dip into the red.”
“A recovery above 107.30 should indicate easing selling interest, but the bullish potential will remain limited as long as the pair holds below 107.70.”
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