USD/JPY chart - Trading View
USD/JPY trades weakens for the 4th straight session. Greenback under pressure after the Fed vows to keep policy easy to support the economy.
US Federal Reserve kept the door open for unconventional monetary policy tools, like Yield Curve Control (YCC) while keeping rates unchanged on Wednesday.
The Fed dot plot shows that rates are not predicted to move till the end of 2022. Jerome Powell's comments reinforced expectations that the Fed is planning to implement yield curve controls in the near future.
Further, the Fed presented a sour economic outlook, pouring cold water over the optimism generated by last week's stellar Nonfarm Payrolls.
Technical bias has turned bearish after break below 200-DMA. Price action has now breached 'Symmetric Triangle'.
'Bearish Engulfing' on the weekly charts adds bearish. Scope for test of cloud base at 106.44. Break below cloud will drag the pair lower.
Major Support Levels: 106.44 (Cloud base), 106, 105.29 (Lower W BB)
Major Resistance Levels: 107.82 (55 and 21 EMA), 107.97 (5-DMA), 108.40 (200-DMA)
Summary: Technical bias has turned bearish after the pair has failed to hold 200-DMA support. Dovish FOMC meeting adds downside pressure.
