USD/JPY recovers from post FOMC lows

By FXStreet FXStreet (Guatemala) – USD/JPY has been recovering from the 100 and something pip sell off when equities dropped and the Yen gathered pace vs a sell-off in the greenback post the Fed’s interest decision in the US shift overnight.

Some early bids are sweeping up the mess left behind the FOMC two day meeting the 120 handle has been found again, after printing as low as 119.78. S&P futures are back into positive territory ahead of the Tokyo open while the Nikkei closed in the green yesterday.

We now await the BoJ minutes and to see how Asian and EM markets react to the Fed’s decision who is waiting until labour markets improve and a more direct course to their inflation target of 2% while assessing the impact of China’s slow growth and subsequent uncertainties.

USD/JPY bears eye 119.30

Technically, Valeria Bednarik, chief analyst at FXStreet explained that in the 4 hours chart, the technical indicators are crossing their mid-lines towards the downside, supporting the shorter term view and pointing for a test of the upcoming Fibonacci support, the 38.2% retracement of the mentioned decline at 119.30.
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Source:: FX Street