USD/JPY higher on the week despite Fed's 50 bps cut
Despite the Fed's outsized rate cut in mid-week, the USD/JPY and other yen crosses have rebounded this week.
The yen has been undermined by the ongoing risk-on trade in equities space. Today saw JPY fall further after the BoJ turned out to be more dovish at its rate decision and press conference than expected.
As a result, the USD/JPY is on the verge of potentially forming a bullish engulfing weekly candle, after finding good support from around the key 140.00 level.
This week's bullish price action suggests that the prior selling pressure may be over, allowing the pair to potentially climb back towards the 146.50 resistance level in the week ahead.
By Fawad Razaqzada, market analyst at FOREX.com
The yen has been undermined by the ongoing risk-on trade in equities space. Today saw JPY fall further after the BoJ turned out to be more dovish at its rate decision and press conference than expected.
As a result, the USD/JPY is on the verge of potentially forming a bullish engulfing weekly candle, after finding good support from around the key 140.00 level.
This week's bullish price action suggests that the prior selling pressure may be over, allowing the pair to potentially climb back towards the 146.50 resistance level in the week ahead.
By Fawad Razaqzada, market analyst at FOREX.com
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