USD/JPY consolidates above 117.00

FXStreet (Córdoba) - The dollar advanced versus the yen and recovered from 1-month lows, although moves were restrained by wary investors amid emerging markets concerns and ahead of the Federal Reserve monetary policy decision.

USD/JPY bounced off the 115.55 area where it scored a 1-month low yesterday session, but the recovery has lost momentum after facing resistance at the 117.50 zone during the European session. USD/JPY is currently trading at 117.20, still up 0.69% on the day.

The FOMC will conclude its 2-day policy meeting and release a statement 19:00 GMT, with attention focus on the 'considerable time' language, to see if the Fed is moving closer to start hiking rates.

USD/JPY technical levels

As for technical levels, USD/JPY could find next resistances at 118.00 (psychological level/Dec 16 high) and 118.55 (21-day SMA). On the other hand, supports are seen at 116.28 (daily low), 116.00 (psychological level) and 115.55 (Dec 16 low).

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