The recent U.S. Federal Reserve (FOMC) meeting had a slightly strong stance on interest rates, but the U.S. dollar did not rise much.
In the Tokyo market, end-of-month yen buying was seen, causing USD/JPY to fall from the 155 yen range to the 153 yen range. Other yen-related currency pairs were also sold first. After that, the decline slowed, but in the New York market, U.S. long-term interest rates fell, pushing USD/JPY down to 153.80 yen.
Since 153.80 yen is the halfway recovery level, some buying happened, but the overall price movement is still downward.
The next support level is around 152.80 yen, which is near the 200-day moving average. Also, 152.50 yen is an important support level based on Fibonacci 61.8%.
If today’s U.S. PCE inflation data is lower than expected, USD/JPY may drop below yesterday’s low of 153.80 yen and test the 153.00 yen level.
USD/JPY Forecast Range: 154.80 yen – 153.00 yen
Note: The above is not a guarantee of profit. Make your own decisions when trading.