USD/JPY tests 107.00 after the Fed rate decision and statement release

USD/JPY test the psychological 107.00 support zone as bears attack the pair.
The Fed dot plot shows that rates are not predicted to move till the end of 2022.

Rajan Dhall, MSTA FX Daily

USD/JPY 4-hour chart

USD/JPY has dipped lower following the FOMC rate decision and statement on Wednesday. The markets were not predicting any move in rates from the Fed but there were some outside bets of a rate rise being projected in late 2020. The dot plot has now confirmed that none of the Fed officials see that happening.

Looking at the 4-hour chart below, the market headed straight for the support zones and 107.00 so far has stalled the bears. If this level breaks then the pair could be heading for the black support line lower down at 106.37 and beyond that 106.00.

All off the indicators are looking bearish as the Relative Strength Index dips below the 30 oversold line once again and the MACD histogram holds firmly in the red. The MACD signal lines are now widening below the zero level, which is also a bearish sign.

USD/JPY daily chart

The daily chart is firmly below the 55 and 200 moving averages. The market looks to be heading towards the lower levels and the green support line at 106.74. Beyond this level, the black line at 106.00 could be next. The indicators are pulling away from the best levels and the MACD histogram has now printed a red bar. The Relative Strength Index signal line is now below the 50 mid-line too.

Additional levels

USD/JPY

Overview
Today last price	107.25
Today Daily Change	-0.53
Today Daily Change %	-0.49
Today daily open	107.78

Trends
Daily SMA20	107.89
Daily SMA50	107.67
Daily SMA100	108.27
Daily SMA200	108.44

Levels
Previous Daily High	108.54
Previous Daily Low	107.62
Previous Weekly High	109.85
Previous Weekly Low	107.38
Previous Monthly High	108.09
Previous Monthly Low	105.99
Daily Fibonacci 38.2%	107.97
Daily Fibonacci 61.8%	108.19
Daily Pivot Point S1	107.42
Daily Pivot Point S2	107.06
Daily Pivot Point S3	106.5
Daily Pivot Point R1	108.34
Daily Pivot Point R2	108.91
Daily Pivot Point R3	109.27

Author

Rajan Dhall, MSTA

FX Daily

Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.

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