FOMC handling, USD/JPY Falling More Severely Than Last Week!

<p>&nbsp;The price chart of the USD/JPY currency pair is showing a lower drop above the level it reached last week.</p><p><br /></p><p>This is due to the effect of the significant depreciation of the US dollar which reacted to the results of the FOMC meeting earlier this morning.</p><p><br /></p><p>The Federal Reserve (Fed) as expected has kept interest rates unchanged at 5.50% for the last meeting of 2023.</p><p><br /></p><p>The follow-up speech by Fed Chairman Jerome Powell is considered dovish with the expectation that some interest rate cuts will be implemented next year.</p><p><br /></p><p>Most of the major currencies including the Yen have the advantage of rising again in the market as the US dollar is again under pressure.</p><p><br /></p><p>Thus, it can be observed that the price movement which was flat before began to exhibit an aggressive plunge after the meeting.</p><p><br /></p><p>The price that tested the 145,900 level failed to continue higher before a significant plunge occurred until trading resumed in the Asian session this morning.</p><p><br /></p><p><br /></p><p>Also before this, the price was also seen to have failed to cross the Moving Average 50 (MA50) barrier in the 1-hour time frame of the price movement on the USD/JPY chart, giving a bearish signal.</p><p><br /></p><p>The price dropped below the 142.00 zone and slightly exceeded the level reached on Thursday last week with the downward momentum seen to continue.</p><p><br /></p><p>The expectation is to head towards the 139.300 level before testing the 137.00 zone which was the focus area for the price in the last July trading.</p><p><br /></p><p>On the other hand, if there is a rebound in price, the level of 143.500 will be passed before the price goes back to the resistance level at 145.900.</p><p><br /></p><p>If it breaks through, it will be a bullish trend change signal for the price to re-exhibit an upward movement to a higher level.</p>