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Forex pairs in this Article » USD/JPY
FXstreet.com (Barcelona) - Despite an initial dip on the Fed taper call, USD/JPY soared yesterday to post a high at 104.36, before losing momentum and retracing overnight to find support in and around the psychological 104 level where it is presently trading.

USD/JPY calms after Fed taper storm

The surprise decision by the Fed to taper stimulus measures by $10bln a month, saw a shot of volatility across the market, with USD/JPY vaulting over a point to break above the psychological 104 level to post a monthly high at 104.36. EUR/JPY sellers were reported overnight, alongside a general bout of profit taking, which would have helped temper USD/JPY’s upside momentum, Overnight, Japanese Chief Cabinet Secretary Suga spoke, commenting that the Fed made an appropriate decision based on economic data, but refused to add his thoughts on Yen's decline. Data wise, overnight saw improvements in the Japanese Leading Economic Index (Oct), and the Coincident Index (Oct), and the All Industry Activity Index (Oct) fall in line with expectations.

What are today’s key USD/JPY levels?

Hourly RSI sits at 58, having moved lower from overbought territory. The hourly 200 SMA sits at 103.6 and moving with upside momentum, while the daily 20 SMA sits at 102.30 and climbing too. Resistance can be found in offers reported ahead of option barriers at 104.50 and 105, with stops above. Light bids are noted below 104, with Japanese Importers reported to be on the bid around 103.75.
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