As expected, the FOMC decided to keep interest rates the same. The statement removed comments about inflation improving, which made the U.S. dollar go up.
Chairman Powell said there is no need to rush in changing policy. He also mentioned that Trump did not request a rate cut.
The USD/JPY pair rose from around 155.00 to 155.61, but it could not reach the Tokyo session high of 155.79 and fell back.
The FOMC meeting seemed a little strict on inflation, but in the end, it is still watching Trump’s administration. For now, the Fed will likely keep rates unchanged and wait to see what happens.
Even though the meeting was somewhat strict, the U.S. dollar did not rise much. Now, traders will focus on the Bank of Japan’s next move. However, since the BOJ already raised interest rates recently, there may be little new information, and the market could move sideways for a while.
Expected USD/JPY Range: 155.80 – 153.80 (50%)
Note: The above is not a guarantee of profit. Make your own decisions when trading.