Federal Market Committee outcome: dollar rises

Forex news from Federal Market Committee did have significant impact yesterday. Dollar regained almost half that it lost in a matter of a few trading sessions. FED gave a very clear signal that it will end this stimulation program quite soon. No wonder stocks fell, gold and silver collapsed and dollar rose. Technically it was all clear: Pound and Euro had already made to their resistance. 

One thing is not sure and that is what would be to the downtrend in Japanese Yen. It looks like it is not over yet. Various Yen pairs are taking out their resistance level, which means that Japanese Yen will continue falling. If the momentum does not stop here we are going to see new lows in eur/usd, gbp/usd and new highs in usd/jpy pairs. 

Tomorrow Canada CPI is released. That should set the tone for Canadian dollar pairs for the upcoming week.

FED fails to push dollar lower

FED interest rate decision failed to push US dollar lower and Euro rally stalled. Japanese Yen also failed to drop further and may start rising bit by bit. Tomorrow we have Non Farm Payrolls data, which will be key event of the week. It may hint as to whether Euro rally will continue or not. It can also provide new optimism for Yen bears. If that fails we may see significant correction in prices as Yen will strengthen, particularly against British pound. gbp/jpy may collapse to 134.00 level in the coming weeks and eur/jpy to 113.00. 

Eur/usd will also down. At least short term correction to 134.00 level should take place. So, let us wait to see further development in price action after NFP.