Dollar continues to struggle post-FOMC

<p>The greenback is sitting lower ahead of European trading as traders keep the post-FOMC reaction from yesterday going. It is a case of sell the dollar, buy everything else or a reversal of the theme that we have been accustomed to for most of 2022. USD/JPY is one of the more notable movers on the day, down 0.9% to 141.60 levels currently:</p><p>The pair is following a drop alongside Treasury yields and is now looking to take out its 200-day moving average (blue line). In doing so, that will put sellers back in control with a first drop below both key daily moving averages since April. <a href="https://www.forexlive.com/centralbank/is-the-bank-of-japan-planning-to-exit-negative-rates-sooner-than-expected-20231213/" target="_blank" rel="follow">This</a> latest rumoured headline involving the BOJ is also helping to stoke the flames and keep the Japanese yen in a better spot ahead of the central bank meeting next week.</p><p>Given the potential break below the 200-day moving average, that will leave little in the way of a push towards 140.00 next for USD/JPY.</p><p>Elsewhere, EUR/USD has also broken out of range and is pushing back towards 1.0900 but that is one of the less painful ones for the dollar. AUD/USD is up 0.9% to 0.6715 – its highest since the end of July – and may look to target the June and July highs next just under the 0.6900 mark. The aussie is also buoyed by a stronger jobs report earlier <a href="https://www.forexlive.com/news/australia-nov-employment-change-615k-expected-11k-unemployment-rate-39-exp-38-20231214/" target="_blank" rel="follow">here</a>.</p>

This article was written by Justin Low at www.forexlive.com.