Bulls step in regardless of BoJ risks
- USD/JPY bulls are back in the game following FOMC.
- BoJ will be disappointed and threats of intervention may keep a lid on the pair.
USD/JPY has been taken back by the bulls in trade on Wednesday following an eventful FOMC meeting and outcome for financial markets. The price initially dropped to test a low of 145.66 before it rallied to wipe out all of the losses and leave gins for the New York session to a post-Fed high of 147.89 so far.
The Federal Reserve statement was written with dovish rhetoric while the Chair’s presser turn risk appetite on a dime with hawkish comments from Jerome Powell.
DXY daily chart
USDJPY H1 chart
The price has left a 3-line strike on the hourly chart which is a change of direction candle, breaking through the structure to leave a bullish bias on the charts for the day ahead. However, the Bank of Japan will be disappointed with Jerome Powell’s pushback against risk in today’s meeting and investors will be wary of subsequent intervention hazards.