USD/JPY Squared up Ahead of the FOMC Statement

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USD/JPY Squared up Ahead of the FOMC Statement

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.

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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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Fan Yang has been a professional forex trader and analyst since 2007. He specializes in technical analysis and has a Chartered Market Technician designation since 2011. He was the chief technical strategist at CMSFX He was also the founder and chief currency strategist at FXTimes Over the years, Fan has not only been a trader and analyst but also an educator. As a proponent of both technical and fundamental analysis in trading, Fan advocates simplicity and discipline as key factors in making trading decisions when faced with so many "clues" and "signals". Currently Fan Yang is the chief currency analyst and webinar instructor at forexminute.com.