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USD/JPY pushes higher to 118.60 ahead of FOMC

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 27, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Edinburgh) - The greenback keeps advancing vs. its Japanese peer on Wednesday, sending USD/JPY to the area of daily peaks near 118.60.

    USD/JPY supported by Treasuries, US data

    The pair’s upside now seems to have met strong resistance around 118.60 despite better-than-expected results from the US housing sector, where New Home Sales have increased to 544K during December, or 10.8%.

    Another source of strength of today’s upside is the solid performance of US Treasuries so far, with the yield of the 10-year benchmark rising nearly 2% ahead of the FOMC meeting. That said, the dollar will be in the limelight later in the session, as market consensus expects the Committee to strike a cautious tone after the December’s lift-off.

    USD/JPY levels to watch

    The pair is up 0.04% at 118.50 facing the next hurdle at 119.82 (50% Fibo of 123.67-115.96) followed by 120.70 (55-day sma) and then 121.48 (200-day sma). On the other hand, a breach of 117.78 (23.6% Fibo of 123.67-115.96) would open the door to 115.96 (low Jan.19) and finally 115.82 (low Jan.15 2015).

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