Ahead of the publication of the Fed rates decision, the lack of investor demand for the USD suggested that market participants were unlikely to expect a rate hike as early as this September. The rates remained unchanged at 0.25%. At the same time, the Fed's Chair Janet Yellen reassured that they are to be increased this year. Moreover, she noted the stabilization of the labor market situation and a moderate inflation growth. Amid this data, the USD fell against its major counterparts: against the JPY it lost more than 100 points.
Today, due to the lack of important macroeconomic releases, the pair dynamics is to be determined by market sentiment. The demand for the USD continues declining that may add support to the JPY.
Support and resistance
Technical indicators confirm that the pair is likely to decline. The price rebounded down from the middle MA of Bollinger Bands and is heading towards the lower MA (118.50). MACD is in the negative zone, thus, indicating the growing volume of short positions.
Support levels: 119.10, 118.60, 118.00, 117.50, 117.10, 116.25.
Resistance levels: 119.40, 120.10, 120.40, 120.75, 121.30, 121.80, 122.10, 122.50, 123.00, 123.75.
Pending sell orders should be placed from the levels of 119.80, 120.10 with the short-term target at 118.00, the medium-term target at 117.10 and stop-loss at 120.90.