USD/JPY: 119.30 eyed on Fed disappointments – FXStreet
FXStreet (Guatemala) – Valeria Bednarik, chief analyst at FXStreet noted that the USD/JPY pair trades flat around 120.35 ever since the day started, as investors are waiting not only for the US Central Bank decision, but also for the upcoming BOJ meeting outcome early Friday.
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Against the usual, the pair can see limited reactions post-FED, and even return to the current level after the dust settles, particularly if the US Central Bank offers no news. Technically, the pair lacks directional strength, with the 1 hour chart showing the price trapped between its 100 and 200 SMAs, and the technical indicators hovering around their mid-lines.
In the 4 hours chart, the RSI indicator heads nowhere around 46, while the Momentum indicator continues correcting higher, but below its mid-line. Should the FED be a big disappointment the pair can break through the 120.00 support and extend its decline down to the 119.30 region, where some buying interest is expected to surge. Above 120.70 on the other hand, the rally can extend up to 121.30/50, where the 200 DMA should continue to cap the upside.
Valeria Bednarik, chief analyst at FXStreet noted that the USD/JPY pair trades flat around 120.35 ever since the day started, as investors are waiting not only for the US Central Bank decision, but also for the upcoming BOJ meeting outcome early Friday.
(Market News Provided by FXstreet)