USD/JPY consolidates post-FOMC gains

By FXStreet FXStreet (Mumbai) – The USD/JPY pair halted its FOMC-backed bullish momentum at 122.65 levels and eased a bit heading towards the late-Asian session, on the back of minor profit-taking after the relentless rise overnight.

USD/JPY forms a small doji on daily charts

Currently, the USD/JPY pair trades 0.20% higher at 122.45, easing-off fresh six-day highs reached at 122.64 in early trades. The major remains underpinned and now consolidates the upside above 20-DMA at 122.40, after witnessing three consecutive sessions of heavy gains.

Moreover, with the Asian equities paring some gains, risk sentiment appears to cool-off as dust settles over the Fed hike aftermath, and therefore keeps a lid on the prices. The Nikkei now trades 1.77% higher versus 2.50% previous while Australia’s S&P/ASX rises 1.62% versus 2% previous.

However, the retreat in USD/JPY is likely to remain short-lived as the greenback is expected to remain strongly on the bids, with markets favouring the US currency after the Fed rate hike by a quarter percent and signalled 100 bps rise next year.

On data-front, the US calendar holds a few US economic news, including the Philly Fed manufacturing gauge, weekly jobless claims and current account data.

USD/JPY Technical levels to watch

In terms …read more

Source:: FX Street