USD/JPY Turnaround Sparks Wider DXY Decline Following New Annual Peak

Dollar Rally Stalls After FOMC Decision

Following the recent FOMC rate announcement, the Dollar Index (DXY) surged upward, breaking out from a falling wedge pattern and climbing back to the 100.22 mark. However, as previously noted, the USD/JPY pair was expected to play a crucial role in determining whether the Dollar's momentum could be sustained. Ultimately, both the DXY and USD/JPY experienced sharp reversals, erasing earlier gains. The DXY was unable to surpass the 100.22 resistance, resulting in a lower high as buyers failed to challenge last week’s peak.