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USDJPY : Might Recover Losses

(USDJPY : 4 Hour Chart)

USDJPY finally broke down from the support trend line of the rising wedge after the Fed dovish comments. As expected the central bank cut its bond purchases by another $10 billion a month to $35 billion. However it also lowered its forecast for growth in 2014 to a range of 2.1% - 2.3% from 2.8% - 3.0% due to weak growth in first quarter as a result adverse winter conditions. Fed did not disclose the timing of the rate hike which disappointed investors moving dollar down however the bank said that the rate might reach 1.2% at the end of next year and 2.5% by the end of 2016.

On the 4 hour chart, the pair found support after breaking the support trend line at 101.78. If the pair continues to decline breaking the current support level the nearest support it will find is at 101.64. 50 day SMA has already crossed 100 day SMA to move below it showing that the pair will continue to follow downtrend. However in the stochastic oscillator the pair has just moved to the oversold zone so the losses seems limited.