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Dollar Declines Following Fed Rate Decision
The recent rally of the U.S. dollar, observed during the U.S. election results, has slightly slowed after yesterday's Federal Reserve meeting. As anticipated by analysts, the Fed lowered the base interest rate by 25 basis points, from 5.00% to 4.75%. In their accompanying statement, Fed officials highlighted robust economic activity and improvements in labour market conditions. Following these comments, the dollar initially declined but attempted to recover its lost ground a few hours after the Fed meeting.
USD/JPY
Technical analysis of the USD/JPY pair suggests the possibility of a deeper downward correction, as a "bearish harami" pattern has formed on the daily timeframe. The initial target range for this retracement is 152.70–152.00. If the price consolidates below 152.00, the pair may test recent lows in the 151.30–150.00 range. However, a return to upward movement could occur if the price confidently re-establishes itself above 154.80.
TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG
Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
The recent rally of the U.S. dollar, observed during the U.S. election results, has slightly slowed after yesterday's Federal Reserve meeting. As anticipated by analysts, the Fed lowered the base interest rate by 25 basis points, from 5.00% to 4.75%. In their accompanying statement, Fed officials highlighted robust economic activity and improvements in labour market conditions. Following these comments, the dollar initially declined but attempted to recover its lost ground a few hours after the Fed meeting.
USD/JPY
Technical analysis of the USD/JPY pair suggests the possibility of a deeper downward correction, as a "bearish harami" pattern has formed on the daily timeframe. The initial target range for this retracement is 152.70–152.00. If the price consolidates below 152.00, the pair may test recent lows in the 151.30–150.00 range. However, a return to upward movement could occur if the price confidently re-establishes itself above 154.80.
TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG
Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.