USD/JPY hits fresh 17-month low after FOMC minutes

USD/JPY dropped further after the release of the Federal Reserve minutes and bottomed at 109.33, hitting the lowest level since October 2014. The pair then bounced to the upside, and it trading around 109.60/70, near the level it had before the minutes.

Greenback rose across the board after the FOMC document. According to it, several members debated about a rate hike in April and a couple of members wanted a hike in March. Fed officials noted that the next move regarding monetary policy will be based on economic data and not on the calendar, signaling that a move during a meeting with no follow-up press conference is possible.

“Several expressed the view that a cautious approach to raising rates would be prudent or noted their concern that raising the target range as soon as April would signal a sense of urgency they did not think appropriate,” minutes said. While “some other participants” considered that an increase might be warranted if economic data came in as expected.

USD/JPY technical levels

To the upside, resistance levels might now lie at 109.90 (Apr 5 low), 110.20 (Asian session low) and 110.55/60 (Mar 17 low / daily high). On the downside, support could be seen at 109.30/35 (daily low), 109.00 (psychological) and 108.35 (Oct 23, 24 & 27, 2014 highs).