The US dollar edged lower against the basket of the currencies after the FOMC rate decision. The pair made high at 119.00 but settles at 118.60 levels but remains above 20dsma.
Credit Suisse: Under the current risk-averse environment, expect the dollar / yen fell to 110 in the next 12 months.
US FOMC interest rate decision to maintain the range of 0.25% to 0.50% unchanged. Labor market conditions improved further even as economic growth slowed late last year. Household spending and business fixed investment have been increasing at moderate rates in recent months, and the housing sector has improved further.
Fed fund futures, however, implied markets expect just one rate hike this year. That put Wednesday’s statement squarely in the spotlight reported by Reuters.
“The statement definitely gave some nod to the slowdown in U.S. growth and to some of the risks emanating from overseas, but it doesn’t seem like they’ve drastically reassessed their outlook for the U.S. economy,” said Ian Gordon, G10 FX strategist at Bank of America-Merrill Lynch in New York.
Nomura: If you wait too long the Bank of Japan, it could lead to irreparable damage; if the dollar rose to 115 yen, the Bank of Japan to take more stimulus measures.
Japanese Prime Minister Abe advisor Koichi Hamada said, if it is him, he will take additional monetary easing. (Nikkei)
Japanese Prime Minister Shinzo Abe: The government and the central bank will work together to overcome deflation.
Japanese Prime Minister Abe advisor Koichi Hamada: Friday the Bank of Japan should take more easing measures . Themselves do not understand the Bank of Japan’s intentions. Japan raised the sales tax should be deferred reported by Wall street CN.
What’s on today?
US-Core Durable Goods Orders m/m
Durable Goods Orders m/m
Pending Home Sales m/m
The pair is trading at 118.85 at Asia’s session, strong resistance zone remains between 119.20 and 119.40 levels. In the four hour chart, 200ma’s seems crucial key resistance level to breach through.
Trading resistance seems at 119.40, 119.60 and 120.10
Support finds at 118.30, 117.90 and 117.60
If the price breakthrough the 200ma/s in the h4 chart and sustains above, the bull might aim at 120.00 and in the extreme case 120.30 likely. If not, likely to re-test 118.50, 118.00 and 117.80 levels.
panic likely to be triggered below 117.60 targets at 117.35, 117.00, 116.70 and 116.50 levels.