On Wednesday, on release of the results of the Fed meeting USD/JPY went down sharply, but by the end of the day the buyers recouped all the losses and finished the trading in the "green" zone. On Thursday the pair is flat with a slight advantage of buyers trying to break above resistance at 147.50.
The Fed raised the rate by 75 basis points, which was what the markets expected. However, at the press-conference Jerome Powell reiterated the regulator's intention to continue the fight against inflation through tightening of monetary policy and stated that the initial targets on rates were insufficient.
At the same time, the Fed chief noted the possibility of a slowdown in the pace of monetary tightening at the December or January meeting.
Also yesterday the US labor market report from ADP was released, according to which employment for the month rose from 192.0 to 239.8 thousand.
Investors are now waiting for the release of Non-farm Payrolls on Friday, November 4.
The day before the Bank of Japan released its minutes, which noted the good pace of growth of the national economy and expressed concern about the falling yen, which could seriously damage businesses and households. The regulator cut its 2022 GDP forecast from 2.4% to 2.0% and raised inflation expectations from 2.3% to 2.9%.
USD/JPY Technical Analysis
The Bollinger Bands indicator for the Daily indicates a weak decline.
The MACD indicator remains in the positive range, but confidently descends to zero, forming a sell signal.
The stochastic oscillator has broken through the 80% level from above, came out of the overbought area and is developing a decline.
If the pair fixes below the support of 147.00, let's go long with Take Profit at 145.00. We'll put a protective stop at 148.00.
If the buyers are able to keep above 147.50, their next target is the key level of 150.00. We will set the stop loss at 148.00.
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