USD/JPY hits 20-month lows after FOMC statement

The US dollar dropped across the board after the Federal Reserve decided to leave rates unchanged. A more dovish than expected statement and FOMC staff projections weakened greenback that hit fresh lows and boosted the value of the ounce of gold.

USD/JPY fell from 105.70 to 105.42, hitting the lowest level since October 2014. Price remains near the lows, headed toward the fourth daily decline in a row. Traders now await Janet Yellen press conference that will start in a few minutes.

The Japanese currency rose against the US dollar but dropped modestly against other currencies as stocks in Wall Street hit fresh highs.

USD/JPY levels

To the downside, support levels might be seen at 105.40/45 (daily low), 105.20 (Oct 2014 low) and 104.65/70. On the opposite direction, resistance could now be located at 105.65 (June 14 low), 105.95 (Asian session low) and 106.40 (daily high).