USD/JPY: short-term bearish indicators before FOMC mins

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 18, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Guatemala) - USD/JPY was making highs for the week and the highest levels since 9th Nov, but lacks follow through at this stage.

    The main focus for the day has been Fed speakers and the FOMC minutes coming up. The trio of Fed speakers today, Lockhart, Mester and Dudley, have not been very convincing, but indicated that the Fed could hike in December. Turning to the minutes, we are on the lookout for any hawkish changes within the Summary of Economic Projections and the path of subsequent path or interest rate hikes.

    USD/JPY 100/200 1hr MA bearish cross

    Valeria Bednarik, chief analyst at FXStreet explained that the technical picture favors the upside, as in the 1 hour chart, the moving averages have accelerated higher below the current levels, although the 200 SMA is crossing above the 100 SMA, implying a decreasing upward momentum.

    "In the same chart, the technical indicators aim slightly higher above their mid-lines, not yet confirming further advances. In the 4 hours chart, the Momentum indicator has turned lower near overbought territory, but the RSI indicator heads higher around 63, limiting chances of a downward move, at least from a technical perspective."
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