Fed Hawkish, BOJ Still Dovish, USD/JPY Hits Highest Level Since 1998!

 Safe-haven currencies the US dollar and the Yen presented interesting moves heading into the end of the week with central bank policy meeting results for both currencies the focus of the market.


The FOMC meeting was first in focus early this morning, witnessing the strengthening of the US dollar as soon as the Federal Reserve (Fed) announced an increase in interest rates by 75 basis points with signals of monetary policy remaining hawkish.


Meanwhile, the yen met the forecast for a decline as the Bank of Japan (BOJ) kept interest rates low at -0.10% with a loose monetary policy at the policy meeting in the Asian session just now.


Thus, the US dollar remained dominant and recorded the latest highest level against the Yen since trading in 1998.


On the price chart of the currency pair USD/JPY has seen the latest surge in price has crossed the resistance zone of the previous weeks despite an initial drop in price during the initial reaction after the FOMC meeting.


Price remains above the Moving Average 50 (MA50) support level on the 1-hour time frame for an indication of continued bullish price action.


The price increase as of 3pm local time has reached a height of 145.80 after breaking through the 145.00 resistance zone.



The target for continued upside is seen to test the 148.00 resistance which is the price peak reached in August 1998.


With prices tending to make gains, recent highs will continue to be recorded again this week.


But be careful if there is a price movement that goes against the direction again, it is likely to be influenced by the profit taking factor at the end of the week or other factors.


The drop in price will again test the level of 145.00 forming a new RBS (resistance becomes support) zone before investors assess the price reaction for further price direction.


If the price continues to decline, breaking through the MA50 support level will give a bearish signal for the price to reach around 142,500.

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