USD/JPY Outlook (20th June 2019)

• FOMC
  
• USD/JPY broke support level
  

Price Movement
Since yesterday, USD/JPY moved down by around 80pips.

Trend
Overall, USD/JPY is trending downwards.

Important Issue
This morning, the U.S. FOMC kept the target range for interest rate unchanged at 2.25% to 2.5%.

In the FOMC Statement, the Committee finds that inflation nearing 2% is still a likely outcome, although they also mention that “uncertainties about this outlook have increased”.

From the FOMC Economic Projections, the Federal Reserve does not expect any rate cuts in 2019 as the central bank’s median target for the interest rate remains at 2.4% for 2019, unchanged from its March projection.
However, the June’s projections projected a lower median target of 2.1% for 2020, hinting at possible rate cut(s) in 2020.

Also this morning, the Bank of Japan kept the interest rate unchanged at -0.1%.
The monetary policy statement pretty much remained unchanged from the previous release.

Technical
This morning, USD/JPY broke the support level of 108.000.

Price Levels
Current Price: 107.659
Next Resistance: 108.000
Next Support: 107.000