Powell reduced concerns over further monetary tightening. The Fed noted weakness in the US economy. Investors are expecting GDP to grow in Q2. Today’s USD/JPY outlook is bearish as investors react to the FOMC meeting. The dollar fell to a three-week low against the yen after Federal Reserve Chair Jerome Powell eased investors’ concerns about further aggressive monetary tightening. –Are you interested to learn more about forex options trading? Check our detailed guide- The Fed increased the benchmark rate by an anticipated 75 basis points, bringing it closer to neutral. This caused the US currency to drop as low as 135.105 yen, its lowest level since July 6. The Fed also noted that while the labor market remains robust, other economic indicators have weakened. The dollar-yen is quite sensitive to changes in US yields. The yields fell after Powell stated that he did not believe the economy was in a recession based on the strength of employment seen in recent payroll reports. “The markets focused on his comments around the fact that we are getting very close to neutral.” “There’s potential now to slow down the pace of hikes, and the market likes that,” said Rodrigo Catril, a senior FX strategist at National Australia Bank. Later today, when the GDP statistics are released, it will be known whether the US economy meets the criteria for a technical recession if it records two consecutive quarters of contraction. USD/JPY key events today Investors trading the USD/JPY currency pair will be informed of US news, such as the Gross Domestic Product (QoQ) (Q2). It is anticipated to increase from-1.6 to 0.5 percent. Janet Yellen will also make a speech later today. The initial unemployment claims report, which will provide insight into the US labor market, will also be watched closely by investors. Get FREE Forex Signals Now! USD/JPY technical outlook: Bears strong enough to hit 135 Looking at the 4-hour chart, we see the price in a strong bearish move. It has broken through the July 22 support at 136.006 and looks to be heading for the July 6 support at 135.006. The RSI is trading well below 50, favoring bearish momentum. –Are you interested to learn about forex robots? Check our detailed guide- Â If the price gets to 135.006, it might find support and retest 136.006 before continuing the downtrend. However, if bears continue this steep move, the price might break through 135.006. Looking to trade forex now? Invest at eToro! Trade Forex Now! 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Saqib Iqbal Saqib Iqbal Saqib Iqbal is a market analyst, prop fund trader and mentor, serving the industry with his analysis and educational content since 2011. The author has great exposure to different financial markets and institutions. He's well-known for his day trading reviews and multiple timeframe analysis. View All Post By Saqib Iqbal Majors share Read Next EUR/USD Price Sell-off Stopped By 1.0119, New Rally in Play After Fed Olimpiu Tuns 2 weeks Powell reduced concerns over further monetary tightening. The Fed noted weakness in the US economy. Investors are expecting GDP to grow in Q2. Today's USD/JPY outlook is bearish as investors react to the FOMC meeting. The dollar fell to a three-week low against the yen after Federal Reserve Chair Jerome Powell eased investors' concerns about further aggressive monetary tightening. -Are you interested to learn more about forex options trading? Check our detailed guide- The Fed increased the benchmark rate by an anticipated 75 basis points, bringing it closer to neutral. This caused the US currency to drop as low as… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.