The USD has been weak ahead of the FOMC event risk . The USD/JPY however has been pretty much trading sideways throughout April. Let’s take a look at the market as we approach the FOMC statement and press conference.
The 4H chart shows that the USD/JPY is essentially in a range between 118.33 and 120.84. There is a very slight bearish bias in the medium-term at least since early March when price retreated from 122. A break above 120 and the falling trendline from 122 will be needed to get rid of this bearish bias, which revives a bullish bias because the prevailing trend in the daily chart is bullish. However, if price holds below 120, and falls below 118.50 today, USD/JPY will very likely push at 118.33, which is a key support, and the central pivot of a multi-month consolidation range seen in the daily chart.
The break below 118.30 would open up the 115.56-116 consolidation low. A break above 120 would open up the 122 high on the year. It’s simple as that as we await the breakout.
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