USDJPY Japanese Yen
The USDJPY is little changed, and just up by 9.2 pips five minutes after the Federal Reserve announced rate cuts for the third time this year. Investors are now waiting for the press conference for further clues. However, the statement is hinting that the central bank is ready to put rate cuts on pause.
In the past statement, they said: “As the Committee contemplates the future path of the target rate for the federal funds rate…” This has now been changed to “The Committee will continue to monitor the implication of incoming information for the economic outlook as it assesses the appropriate path of the target range for the federal funds rate.”
Ahead of the event, the markets were giving it a 26.1% probability of another rate cut in December, but today’s statement could change this altogether, and we might see the probability decline, which could boost the USDJPY pair.
Traders are now waiting for the FOMC press conference to provide more color.
As for the USDJPY pair, the price remains in an uptrend above the October 25 low of 108.48, and the price is also trying to gain momentum following the triggering of a major inverse head and shoulders pattern on October 15. For more on the pattern, and its target of 112.10, read: USDJPY is Near to Break Major Level As Stocks Surge