The dollar is falling in European morning trading as the post-Fed reaction is now starting to weigh more heavily. USD/JPY traded as high as 143.94 in Asia but is now trading roughly flat at 143.18.
USD/JPY hourly chart
Looking at the market as a whole, stocks are rising while bond yields are falling from the day's highs.
In fact, Treasury yields have now fallen to their lowest levels of the day, with the two-year yield falling from 3.65% to 3.59% and the 10-year yield falling from 3.73% to 3.69%.
Gold is also currently up 0.8% at $2,579 and is expected to retest $2,600.
Returning to USD/JPY, the pair remains highly dependent on interest rate market movements, but the short-term chart above suggests that at least buyers are still hanging on a little.
A drop below both the 100-hour (red line) and 200-hour (blue line) moving averages would bring the 140.00 level back into focus, so for now, these will be the key levels to watch in the short term.
As for other dollar pairs, GBP/USD currently looks set for a retest of daily resistance from the August high at 1.3266, while AUD/USD is starting to challenge a firm break above 0.6800 before next aiming for a test of the December 2023 high at 0.6871.
