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17 Sep 2015
USD/JPY extends decline to 119.80
FXStreet (Córdoba) - USD/JPY weakened sharply after the Federal Reserve decided to leave rates unchanged at record lows. Initially found support above 120.00 but then, during Janet Yellen press conference, dropped further and bottomed at 119.81.
The pair currently is hovering around 119.90/95, 60 pips below the level it had 24 hours ago and more than a hundred pips below daily highs.
Fed delays liftoff, bonds soar
Fed Chairwoman Yellen said that the committee judged it appropriate to wait for more evidence, “including some further improvement in the labor market, to bolster its confidence that inflation will rise to 2% in the medium term”, before rising rates.
The decision was mostly expected but some analysts considered the possibility of a rate hike. Greenback weakened across the board after the FOMC statement. Near the end of trading in Wall Street is consolidating losses versus European currencies and the yen but it trimmed losses against commodity currencies as stocks in Wall Street retreat back to neutral territory. The yen was boosted by a decline in US bond yields. The 10-year bond dropped from near 2.30% to 2.20%.
The pair currently is hovering around 119.90/95, 60 pips below the level it had 24 hours ago and more than a hundred pips below daily highs.
Fed delays liftoff, bonds soar
Fed Chairwoman Yellen said that the committee judged it appropriate to wait for more evidence, “including some further improvement in the labor market, to bolster its confidence that inflation will rise to 2% in the medium term”, before rising rates.
The decision was mostly expected but some analysts considered the possibility of a rate hike. Greenback weakened across the board after the FOMC statement. Near the end of trading in Wall Street is consolidating losses versus European currencies and the yen but it trimmed losses against commodity currencies as stocks in Wall Street retreat back to neutral territory. The yen was boosted by a decline in US bond yields. The 10-year bond dropped from near 2.30% to 2.20%.