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USD/JPY: The calm before Fed minutes-storm, around 120

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 7, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - The choppy-trend in the USD/JPY pair lost momentum and the pair now consolidates the BOJ decision-induced losses as markets turn cautious ahead of the FOMC minutes release due later in the US session.

    USD/JPY below hourly 200-SMA

    Currently, the USD/JPY pair trades -0.15% at 120.03, unable to extend beyond the hourly 200-SMA support turned-resistance located at 120.10 in last hours. The major met fresh supply on its attempt to hourly 20-SMA barrier after BOJ Kuroda’s comment and drops to the 120 handle, where it now wavers.

    BOJ Governor Kuroda stated nothing new to offer in his press conference, reiterating that the economy is recovering moderately while the QQE is having its intended effects and so on.

    Meanwhile, markets now eagerly await the Sept 17 Fed meeting minutes due for release later tonight for fresh direction on the major, which is stuck between 118.60-121.35 range since last month.

    USD/JPY Technical levels to consider

    To the upside, the next resistance is located at 120.16 (20-DMA), beyond which 120.56-57 (Oct 5 & 6 Highs) levels could be tested. A breach of the last, the pair could climb further for a test of 50-DMA located at 120.95. To the downside immediate support might be located at 119.22-21 (Sept 29 & 24 Lows). A breach of the last, the pair could drop to 118.83 (Sept 8 Low) levels.
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