USDJPY Technical Analysis – “Hawkish” 50 bps cut?

FundamentalOverviewYesterday, the Fed finally startedits easing cycle and decided to do it with a 50 bps cut. The market was alreadyleaning towards a 50 bps move, so it wasn’t a surprise. The larger cut was framedas kind of an “insurance” cut with the dot plot showing two more 25 bps cuts bythe end of the year and less than the market expected in 2025. The US Dollar weakenedinitially but eventually shot higher as Treasury yields rallied on a lessdovish than expected Powell with the market pricing out the aggressive ratecuts expected in 2025.Now that the decision isbehind us, the focus will be on the economic data. If we start to see an improvement,then Treasury yields will likely continue to rise and drive USDJPY higher.Conversely, if the data weakens significantly, the market will start to worryabout a recession and take USDJPY lower.USDJPYTechnical Analysis – Daily TimeframeOn the daily chart, we cansee that USDJPY bounced strongly from the 140.00 handle following the Fed decision.We got a rejection around the 143.50 level as the sellers stepped in around theprevious swing low level. The buyers will want to seethe price breaking higher to increase the bullish bets into the 150.00 handle.The sellers, on the other hand, will want to see the price breaking through the140.00 supportto increase the bearish bets into new lows.USDJPY TechnicalAnalysis – 4 hour TimeframeOn the 4 hour chart, we cansee more clearly the rejection from the 143.50 level. If we get a deeperpullback, the buyers will likely lean on the upward trendlinearound the 141.00 handle to position for a break above the major trendlinearound the 145.00 handle. The sellers, on the otherhand, will want to see the price breaking below the trendline and the 140.00 supportto increase the bearish momentum.USDJPY TechnicalAnalysis – 1 hour TimeframeOn the 1 hour chart, we cansee that we have a minor support zone around the 142.00 handle. This is wherewe can expect the buyers to step in with a defined risk below the support toposition for a rally into the major trendline. The sellers, on the otherhand, will want to see the price breaking to the downside to increase thebearish bets into the 141.00 handle. The red lines define the average daily range for today. UpcomingCatalystsToday we get the latest US Jobless Claims figures, while tomorrow we concludethe week with the Japanese CPI and the BoJ Rate Decision.See the video below This article was written by Giuseppe Dellamotta at www.forexlive.com.