Currently USD/JPY is 108,26. USD JPY is in a range between 107,80 and 108,50. The volatility is high. The market is hot with the news that Falling oil prices have helped sooth market disappointment from the unchanged U.S. interest rates, allowing the dollar to hit a 7-week low vs. the yen. The Fed has decided to keep interest rates unchanged at 2%, according to market expectations.

The only policymaker in favor of an interest rate hike was Fed President Richard Fisher, who was not supported by his colleagues. Most traders believe that interest rates will remain unchanged until 2009, due to the Fed's highlighting of inflation concerns and risks to growth.

I believe that the drop of oil prices to $118 a barrel, a 3-month low, is the main factor for the dollar's rise. The current price of oil has helped remove one major concern from the struggling U.S. economy. The economic uncertainty around the world might cause central banks around the world to cut interest rates, making the dollar attractive for foreign investors.

Yet analysts of Finexo wish to make clear that the dollar is strengthened only because other economies are getting worse. The dollar stabilized at 108.28 yen after hitting the 7-week high of 108.48 yen. and some of my friends also believe that there is key resistance at 108.60 yen, due to selling by Japanese exporters, slowing down the dollar's ascent.

Resistances
108,50 - 108,60
Supports
108,15 - 107,80

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