- USD broadly firmer early on Wednesday, having bounced on the back of higher Treasury yields as the market await Fed decision, due at 1900 GMT.
- USD/JPY back down after early uptick to 121.89, daily Tenkan at 121.90 seen capping gains. Solid bounce in Asian stocks which boosted sentiment across likely to limit downside.
- The pair closed above 200 DMA (121.57) in Tuesday’s trade, which is now a strong support on the downside. Stochs have rolled over from oversold and RSI is biased higher.
- We expect the USD to gain immediately in the aftermath of Fed tightening, but if the statement were to be extremely dovish USD could see falls.
Based on charts, we see upside for USD/JPY and would buy dips in the pair around 121.60, SL: 120.50, TP: 123.35Resistance Levels:R1: 121.90 (Daily Tenkan)R2: 122.02 (10 DMA)R3: 122.48 (21 DMA)Support Levels:S1: 121.57 (200 DMA)S2: 121.38 (Cloud top)S3: 121.23 (Dec 10 lows)
The material has been provided by InstaForex Company – www.instaforex.com