The Dollar/Yen breaks below the 109.11 support level as yesterday's Fed meeting presented a panel that was more dovish than expected. The FOMC statement showed that the US central bank intends to remain patient in regards to raising rates and trimming its balance sheet. The pair was mainly driven by the weakening of the US Dollar as a dovish Fed means that holding US Dollars is less attractive now since interest rates will not increase. For today, investors will continue to digest yesterday's dovish FOMC statement while also monitoring the results of the US PCE Deflator, the Fed's preferred inflation tracker.
The Dollar/Yen breaks below both the 13-period moving average and the 50-period moving average. The break below these moving averages alongside the 109.11 support, paves the way for a drop towards the 108.35 support. The pair's general bias is now officially bearish as prices are trading below all three major moving averages.
Support: 109.11 / 108.35
Resistance: 109.50 / 110.10