30 Oct 2013
USD/JPY breaks resistance; reaches 98.51
FXstreet.com (Chicago) - USD/JPY was fueled by bulls shortly after the release of the Federal Reserve interest rate decision.
Press release highlights
“Committee decided to continue purchasing additional agency mortgage-backed securities at a pace of $40 billion per month and longer-term Treasury securities at a pace of $45 billion per month. The Committee is maintaining its existing policy of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities and of rolling over maturing Treasury securities at auction.”
The Committee recognizes that inflation persistently below its 2 percent objective could pose risks to economic performance, but it anticipates that inflation will move back toward its objective over the medium term.
USD/JPY Technical Levels
Price action reveals heavy buying shortly after the Fed’s announcement reaching 2-week highs at 98.51. The pair is now offered at 98.32 and oscillates between the supports aligned at 98.19 (October 22nd highs), 97.90 (October 22nd lows) followed by 97.74 (October 27th highs) and the resistances set at 98.69 (October 15th highs), 99 (October 16th highs) ahead of 99.36 (September 20th highs). According to the FXstreet.com trend index, the pair is slightly bullish on one-hour timeframe analysis and hovers above the EMA20.
Press release highlights
“Committee decided to continue purchasing additional agency mortgage-backed securities at a pace of $40 billion per month and longer-term Treasury securities at a pace of $45 billion per month. The Committee is maintaining its existing policy of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities and of rolling over maturing Treasury securities at auction.”
The Committee recognizes that inflation persistently below its 2 percent objective could pose risks to economic performance, but it anticipates that inflation will move back toward its objective over the medium term.
USD/JPY Technical Levels
Price action reveals heavy buying shortly after the Fed’s announcement reaching 2-week highs at 98.51. The pair is now offered at 98.32 and oscillates between the supports aligned at 98.19 (October 22nd highs), 97.90 (October 22nd lows) followed by 97.74 (October 27th highs) and the resistances set at 98.69 (October 15th highs), 99 (October 16th highs) ahead of 99.36 (September 20th highs). According to the FXstreet.com trend index, the pair is slightly bullish on one-hour timeframe analysis and hovers above the EMA20.