# USD/JPY slides into 146.00 after Fed holds rates, Powell leaves the door open for rate cuts

> The Fed held rates unchanged on January 31, 2024, while signalling that cuts are likely this year and that it needs more confidence inflation will reach 2%. USD/JPY dropped to around 146.00 after a risk-off reaction, then pulled back in choppy trade. Markets priced a high chance of a first cut by May.

- Date: 2024-01-31 · published 2024-01-31T12:00:00.000Z
- Category: macro · region US · magnitude low
- Page: https://feedsoft.ai/events/32360-usd-jpy-slides-into-146-00-after-fed-holds-rates-powell-leaves-the-door-open
- Commodities: [Japanese Yen (JPY per USD)](https://feedsoft.ai/c/USDJPY.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

A softer dollar and a firmer yen lower the local-currency cost of USD-priced feed grains and meal for Japan, which can support import demand. Dollar weakness also tends to lend modest support to dollar-denominated grain prices.

## Read by commodity

- DXY: bearish ▼
- USDJPY: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2019-10-30 | [US yields fall after the Fed cuts rates for the third time in 2019](https://feedsoft.ai/events/56486-us-yields-fall-after-the-fed-cuts-rates-for-the-third-time-in-2019.md) | +0.1% | +1.0% |
| DXY | 2019-06-21 | [Gold prices after Fed opens door for potential rate cut](https://feedsoft.ai/events/58513-gold-prices-after-fed-opens-door-for-potential-rate-cut.md) | -0.1% | +0.1% |
| DXY | 2024-11-07 | [Gold holds firm after US Fed rate cut, softer dollar](https://feedsoft.ai/events/27332-gold-holds-firm-after-us-fed-rate-cut-softer-dollar.md) | +1.0% | +0.8% |
| DXY | 2021-08-27 | [Dollar slips after Powell embraces tapering, holds on rate hikes](https://feedsoft.ai/events/45477-dollar-slips-after-powell-embraces-tapering-holds-on-rate-hikes.md) | -0.9% | -0.0% |
| DXY | 2022-11-02 | [US dollar falls broadly after the Fed hints at a slower pace of rate hikes](https://feedsoft.ai/events/38845-us-dollar-falls-broadly-after-the-fed-hints-at-a-slower-pace-of-rate-hikes.md) | -1.4% | -4.2% |

## Sources

- fxstreet.com: https://www.fxstreet.com/news/usd-jpy-catches-a-bid-on-static-fed-rate-call-tests-14680-202401311912

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.