Market Overview

USD/JPY: Marginally Lower Ahead Of Fed, BOJ

Share:

The USD/JPY pair trades marginally lower on a daily basis but is holding above the 111.00 level, which seems to be a downward corrective movement according to technical readings.

Not only the will the Fed have its monetary policy meeting Wednesday, but so too will the Bank Of Japan, which will unveil its latest decision in the early Asian session on Thursday.

Nevertheless, the BOJ is not expected to announce changes to its current policy, with all expectations centered on Yellen & Co. The market will be closely watching the press conference and the dot-plot, looking for clues on what the next move will be.

After rallying since early last week, the pair pared gains just shy of 112.00, mostly due to the cautious stance ahead of the US Central Bank meeting as equities and yields rallied in the background.

The 4-hour chart shows that the 100-day simple moving average is surpassing the 200-day SMA, both far below the current level, whilst technical indicators neared neutral territory before losing directional strength. The 23.6 percent retracement of its latest daily advance comes at 110.82, the level to watch, as a break below it will likely favor a downward continuation for the following sessions towards the 110.00 level, and even beyond.

screen_shot_2017-09-20_at_11.08.39_am.png
Support levels: 111.10 110.80 110.50
 
Resistance levels: 111.60 112.00 112.45
 

Posted-In: FXStreetNews Forex Events Federal Reserve Markets

 

Related Articles

View Comments and Join the Discussion!
Loading...

Partner Center

Loading...