USD/JPY Price Analysis: The USD has seen some mild weakness since the Fed announcement

• The Fed keeps rates unchanged as expected.
• In an initial reaction, the pair moved mildly higher but then resumed the pattern of selling.

USD/JPY daily chart

As expected the Federal Reserve has kept rates unchanged but there has been a change to the language. They kept interest rates unchanged at 0.10% and reiterated they will be able to use more tools if needed. 

Looking at the chart below, there has bearly been a move to the latest update from the Fed. The support level at 104.90 is holding but crucially this is under the 105 handle. The pair has been very bearish at the moment and this could be expected to continue but there are some upside risks are we have the press conference yet to come. 

The indicators are now showing that they were already pretty bearish before the event. The Relative Strength Index was holding in a negative position in the oversold area. The MACD histogram is firmly in the red and the signal lines have been accelerating their move lower as the greenback had been losing value in recent weeks.

Additional levels