Market Outlook
USDJPY weakens further as Fed deliver dovish signal. - Zeal Capital Market

USDJPY weakens further as Fed deliver dovish signal.

23-03-2023 10:11

“Fed brings forth some dovish signal in their latest policy meeting, spurring significant selloff on the US dollar.”

US dollar hits 7-weeks low, a far fetch from previous high level following Federal Reserve’s monetary policy meeting. Earlier, Fed hiked interest rates by 25 basis points as expected but delivered a slightly tweaked language towards the market. The Fed said that they may raise interest rates by another 25 basis points before commenting that they may need to reaffirm additional policy measures by assessing its appropriacy. Latest comment from Fed suggest that they are inching closer to terminal rate sooner than expected while any further rate hikes will likely be dependent on future economic data.

Technical Analysis

USDJPY weakens further as Fed deliver dovish signal. - Zeal Capital Market

USDJPY, Daily: The pair extended its losses following previous retracement from the 200-MA line. MACD which shows significant bearish momentum suggests the pair to advance further downwards in the near-term.

Resistance level: 134.90, 142.35

Support level: 127.10, 121.45

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