The USDJPY at 139.764 is experiencing instability due to the Federal Reserve and conflicting messages.

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• USD/JPY is volatile over the Fed and various mixed messages.

The pair currently trades last at 139.764.

The previous day high was 140.31 while the previous day low was 139.01. The daily 38.2% Fib levels comes at 139.81, expected to provide resistance. Similarly, the daily 61.8% fib level is at 139.51, expected to provide support.

USD/JPY is volatile following the Federal Reserve’s interest rate decision and projections. The pair jolted to the upside on the knee-jerk as the market prices in more rate hikes ahead although the pair is now turning lower during Chairman Jerome Powell’s presser.

The markets are now digesting Powell’s comments as well as the forecasts, projections and statement of the board.

US interest rate decision actual 5.25% (forecast 5.25%, previous 5.25%).
The banking system is sound and resilient.
Fed officials see Fed funds rate at a median of 5.6% at end of 2023.
Fed policymakers see higher GDP growth in 2023, a lower unemployment rate and less progress on core inflation than they saw in March.
Holding rates steady allows for assessment of policy impact.
The extent of additional firming to hinge on the economy.
FOMC vote was unanimous.
Voted 11-0 for Fed funds rate action.
Fed will continue same pace of reducing treasury and MBS holdings.
Economic activity expanded at modest pace.
Job gains robust and unemployment remains low.
Fed median rate forecasts rise to 5.6% end-* 23, 4.6% end-* 24.
Fed officials see US GDP at 1.0% in 2023 and 1.1% in 2024.
Fed signals additional rate increases possible later this year.

All in all, this was a hawkish hold and consequently, Fed swaps no longer consider a 2023 rate cut likely.

Markets are now digesting Fed’s Powell, currently taking questions from the press:

Technical Levels: Supports and Resistances

USDJPY currently trading at 139.79 at the time of writing. Pair opened at 140.22 and is trading with a change of -0.31 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 139.38, 50 SMA 136.37, 100 SMA @ 134.69 and 200 SMA @ 137.28.

The previous day high was 140.31 while the previous day low was 139.01. The daily 38.2% Fib levels comes at 139.81, expected to provide resistance. Similarly, the daily 61.8% fib level is at 139.51, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 139.39, 138.55, 138.09
• Pivot resistance is noted at 140.68, 141.14, 141.98

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