USD/JPY tumbles below 111.00 after FOMC meeting

• Yen gains versus US dollar after Fed’s meeting. 
• US central bank delivers dovish message. 
• Fed’s Powell to deliver press conference at 18:30 GMT. 

The USD/JPY pair lost more than 50 pips in the minutes after the Federal Reserve released its statement, the summary of economic projections and an announcement regarding the balance sheet. 

The US dollar tumbled in the market while the yen also weakened amid a rebound in equity prices. The 10-year yield fell to 2.56%,the lowest since early January adding pressure to the USD/JPY. 

The pair fell from 111.50 to 110.81, reaching the lowest level since March 8. It was under pressure as traders now await Jerome Powell’s press conference. The Fed kept interest rate unchanged as expected and announced the balance sheet reduction program will end in September. The FOMC staff signaled no rate hikes for the rest of the year and downgraded growth forecasts. 

USD/JPY Technical levels 

On the downside, support levels might be seen at 110.75 (Mar 8 low), 110.45 and 110.15. On the upside, resistance now could be located at 111.00 (Mar 13 low), 111.35 and 111.50.