The two year yield is down to 4.041% that’s down -13.5 basis points and down from 4.13% before the Fed decision. That is driving the USD down as a first reaction. The Fed kept the target terminal rate at 5.1% the same as December. They do not see the PCE inflation moving below 2% target (see 2.1% in 2024).
A look at the US dollar shows:
EURUSD
The EURUSD is training to the highest level since February 3, and then the process has extended above the 61.8% retracement of the move down from the February high. Stay above the 61.8% retracement is more bullish through the Fed Chair press conference. On the top side watch the 1.0866 up to 1.08869 as the next target to get to and through. Move above that and traders will target the swing high from February 3 at 1.0939. The February 2 high is at 1.10323.
EURUSD rises after Fed rate hike
USDJPY:
The USDJPY has moved below the 100 hour MA at 132.264 and moved into a swing area between 131.55 and 131.84. It would take a move below 131.551 to increase the bearish bias. On the upside, the 100 hour moving average 132.264 is now a risk defining level. Stay below is more bearish.
USDJPY moves to a lower swing area