The price chart of the USD/JPY currency pair is showing a lower drop above the level it reached last week.
This is due to the effect of the significant depreciation of the US dollar which reacted to the results of the FOMC meeting earlier this morning.
The Federal Reserve (Fed) as expected has kept interest rates unchanged at 5.50% for the last meeting of 2023.
The follow-up speech by Fed Chairman Jerome Powell is considered dovish with the expectation that some interest rate cuts will be implemented next year.
Most of the major currencies including the Yen have the advantage of rising again in the market as the US dollar is again under pressure.
Thus, it can be observed that the price movement which was flat before began to exhibit an aggressive plunge after the meeting.
The price that tested the 145,900 level failed to continue higher before a significant plunge occurred until trading resumed in the Asian session this morning.
Also before this, the price was also seen to have failed to cross the Moving Average 50 (MA50) barrier in the 1-hour time frame of the price movement on the USD/JPY chart, giving a bearish signal.
The price dropped below the 142.00 zone and slightly exceeded the level reached on Thursday last week with the downward momentum seen to continue.
The expectation is to head towards the 139.300 level before testing the 137.00 zone which was the focus area for the price in the last July trading.
On the other hand, if there is a rebound in price, the level of 143.500 will be passed before the price goes back to the resistance level at 145.900.
If it breaks through, it will be a bullish trend change signal for the price to re-exhibit an upward movement to a higher level.
