USD/JPY consolidative around 120.40 pre-FOMC

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 28, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Edinburgh) - The greenback is posting marginal losses vs. its Japanese counterpart on Wednesday, taking USD/JPY to the 120.40/50 band.

    USD/JPY attention to the FOMC meeting

    Spot is retreating since Monday, correcting lower after climbing as high as the 121.50 area, or multi-week peaks, backed by increasing speculations on the potential timing of the Fed’s lift-off and the likeliness of further easing by the BoJ at its meeting on Friday.

    Further releases in the US economy on Thursday will see the flash Q3 GDP figures, Initial Claims, PCE and Pending Home Sales. On the Japanese side, Industrial Production results are due tomorrow followed by key inflation figures and unemployment rate.

    USD/JPY levels to consider

    At the moment the pair is retreating 0.05% at 120.37 with the next support at 118.55 (23.6% Fibo of 125.28-116.46) followed by 118.47 (2-month uptrend) and then 116.16 (low post PBoC move Aug.24). On the other hand, a breakout of 121.02 (200-day sma) would open the door to 121.50 (high Oct.23) and finally 121.91 (61.8% Fibo of 125.28-116.46).
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