29 Jan 2014
USD/JPY: shallow bounce as Fed tapers
FXstreet.com (Córdoba) - The USD/JPY bounced from lows as the knee-jerk reaction after the Federal Reserve decided to cut its QE program by an extra $10 billion, leaving asset purchases at $65 billion per month.
The USD/JPY briefly spiked toward the 102.35 zone as the greenback strengthened on the decision, although the advance was quite shallow as market was already anticipating such a move. The FOMC decision was unanimous, for the first time since June 2011. However, the greenback lacked follow through and pulled back to currently trade around 120.00, recording a 0.9% loss on the day.
USD/JPY technical levels
In terms of technical levels, the USD/JPY has immediate supports at 101.94 (Jan 29 low) and 101.76 (Jan 27 low). On the other hand, resistances could be found at 102.35 (intraday level), 103.00 (psychological level) and 103.45 (Jan 29 high).
The USD/JPY briefly spiked toward the 102.35 zone as the greenback strengthened on the decision, although the advance was quite shallow as market was already anticipating such a move. The FOMC decision was unanimous, for the first time since June 2011. However, the greenback lacked follow through and pulled back to currently trade around 120.00, recording a 0.9% loss on the day.
USD/JPY technical levels
In terms of technical levels, the USD/JPY has immediate supports at 101.94 (Jan 29 low) and 101.76 (Jan 27 low). On the other hand, resistances could be found at 102.35 (intraday level), 103.00 (psychological level) and 103.45 (Jan 29 high).