On December 13, 28023, at 19:00 GMT, the Federal Funds Rate remained unchanged at 5.50%, aligning with the forecasted and previous figures. This data influenced the market, impacting the ongoing trend of USD pairs.
The USDJPY pair declined from 145.070 at 19:00 GMT, coinciding with the rate announcement, to 143.113 by the closure of the 1-hour candlestick at 20:00 GMT.
Following the price rejection of the main resistance at 151.906, USDJPY has experienced a continuous descent, breaking successive support levels. Analysis of the weekly chart suggests a likelihood of USDJPY persisting in its downtrend, potentially reaching the key support at 127.077.
Traders anticipating a trend reversal may interpret the current movement positively, supporting the speculation that USDJPY has shifted from its overall uptrend and might sell until reaching the support at 127.077. On the other hand, trend continuation traders may view the reversal as a temporary pullback, presenting an opportunity to buy at a lower price.
The outlook for the upcoming days depends on how the market responds to the current direction of USD pairs, with potential for both continued descent and a reversal in trend.
The BOJ will release their own monetary policy statement and interest rate level next Tuesday 19th December.
