17 Jun 2015
USD/JPY drops sharply and erases gains as Fed leaves rates unchanged
FXStreet (Córdoba) - USD/JPY reversed dramatically after the FOMC statement and during Janet Yellen press conference. The pair erased gains and dropped more than a hundred pips in less than an hour.
After hitting the strongest level in a week at 124.44, USD/JPY turned to the downside as the US dollar weakened across the board, and fell toward the 123.20/30 area, that is a key short-term support that capped the decline on Monday and Tuesday.
Currently trades around 123.30 marginally below the level it closed yesterday and under bearish pressure as Yellen answers questions at the Fed. According to her, current economic conditions do not warrant yet a rate hike and she mentioned again that rate hikes will be gradual over time.
After hitting the strongest level in a week at 124.44, USD/JPY turned to the downside as the US dollar weakened across the board, and fell toward the 123.20/30 area, that is a key short-term support that capped the decline on Monday and Tuesday.
Currently trades around 123.30 marginally below the level it closed yesterday and under bearish pressure as Yellen answers questions at the Fed. According to her, current economic conditions do not warrant yet a rate hike and she mentioned again that rate hikes will be gradual over time.