USD/JPY drops to 101.55 on Brainard comments

The US dollar dropped across the board in the lat minutes after comments from Fed’s Lael Brainard. She said that the case to tighten monetary policy preemptively is less compelling. She also mentioned that inflation was noticeably below the Fed’s target.

USD/JPY  fell from 101.96 to 101.55, hitting a fresh daily low. The pair then rebound and it was trading at 101.85, back again below the 101.90 area.

Brainard comments triggered volatility across the currency market and also in equity prices. Stocks in Wall Street reacted to the upside, removing strength out of the yen.

Technical levels

To the downside, support levels might lie at 101.55 (daily low), 101.40 (Sep 8 low) and 101.00 (psychological). On the opposite direction, resistance could be seen at 102.20 (20-hour moving average), 102.65 (daily high) and 103.05 (Sep 9 high).