USD/JPY fell sharply after the FOMC decided to cut rates by 0.50%. It then rebounded following Powell's remarks.

【9/18Market Overview

In Tokyo time, USD/JPY isFOMCaheadaround 141141yen level higher range.In New Yorktime,the Fedannounced a0.50% cut. Following the release, dollar selling occurred. It fell to as low as140.44yen. Simultaneously releasedFOMCdot plots showed the rate outlook as of year-end2024midpoint at4.375%,year-end at3.375%,year-end at2.875%, indicating the possibility of an additional 0.502% cut in the remaining two meetings this year. PowellFRBChair indicated in the post-FOMC press conference thatFOMCdoes not imply urgency, thatFRBcould raise or cut rates sooner or later, or pause;0.50% cuts will not be delayed, a signal of resolve, not a new paceas the dollar regained strength.U.S.-year yields rose as well, pulling USD/JPY up to10142.70yen.