Pre FED Analysis: USD/JPY Still Ranging but Watch 113.40
The USDJPY currency pair has been sold from the levels stated in last Friday's technical analysis. The ascending trend line is still intact, so the price might still be bought on dips. Traders should pay special attention today, as it is the most important day for the USD crosses. Later today, the FOMC will release a statement with a Federal Funds Rate decision, who are expected to hike the rate to 2.25 %.
The FOMC usually changes the statement slightly at each release. It's these changes that traders should look at, as they overshadow the actual fund rate decision, which is usually priced in the markets. The FOMC Statement contains the outcome of their vote on interest rates and other policy measures, along with commentary about the economic conditions that influenced their votes. Additionally it discusses the economic outlook and offers clues on the outcome of future votes. Don't forget to check our Forex calendar for all the economic announcements, forecasts, and regular updates in relation to currencies.
Technically, the USD/JPY has formed an ascending trend line right at the S1 and PP Admiral pivot points. Rejections from 112.70-80 are possible as long as the trend line holds. Targets are 113.00, with 113.55 as the final target. A drop below the weekly Admiral Pivot - 112.35 should aim for 112.05 and 111.83. The price should be very volatile in this pair, so be careful and follow the price action as usual.
Pivot Lines - Weekly Support and Resistance
POC - POC - Point Of Confluence (The zone where we expect the price to react - aka the entry zone)
This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Please note that such trading analysis is not a reliable indicator for any current or future performance, as circumstances may change over time. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.