Post-FOMC, USDJPY Return to 117-119


The dollar rose on Thursday after the Federal Reserve signaled that they are on track to raise interest rates next year. The Fed said “patient ” as an approach in deciding when to raise the cost of borrowing, which he said guidance is consistent with previous statements that the low interest rates will be maintained “for a considerable time”. Nevertheless, it provides stimulus to the market.

Janet Yellen said at a press conference said that the interest rate will not rise to “at least a couple of meetings (FOMC),” which means April or early next year.

Against the yen, the dollar rose up to 119.00, extending a rebound from its one-month low the range of 115 late hit on Tuesday. However, data on Wednesday showed US CPI fell the most in almost six years in November as oil prices plummeted, still leaves fears of deflation. So hold USDJPY rally at the level of 119.00.
For the European session, USDJPY have the support and Resistance at 117.50 and 119 nearby, so it is expected that it will be ranging the range. When viewed from the daily average, USDJPY likely to achieve an intraday high in the range of 120 or even back pulled back to its pivot line in 117.50an.

To this day, the market focus is on the German Ifo survey (16.00 GMT+7), which if positive, the potential to increase the risk appetite and pushed the dollar. Although the possibility of the market will begin to quiet ahead of the holidays, but traders remain wary of the price of oil and other currencies such beberpa ruble as an indication of global sentiment.

Here is the level of support and Resistance for USDJPY this morning
Support: 117.43 – 116.79 – 116.25
Resistance: 119.00 – 119.55 – 119.90