29 Apr 2015
USD/JPY supported at 118.75
FXStreet (Mumbai) - The US dollar trades muted in a flat-lining versus the Japanese yen in the mid-Asian session, keeping USD/JPY well below 119 handle, as traders anxiously awaited the conclusion of the FOMC meeting on Wednesday and the BOJ rate decision on Thursday.
USD/JPY back below 119
Currently, the USD/JPY pair trades dead flat at 118.86, hovering around fresh session highs at 118.88 levels. The USD/JPY pair remains directionless, squeezed in a 10-pips extremely narrow range with sellers seem to be getting exhausted near 118.75 – key support, as the pair failed to breach the last on several occasions.
Meanwhile, the major remains supported despite muted USD as rising longer and shorter duration US treasury yields, 10-yr yields at 2% and 2-yields at 0.563% are gaining 1.54% and 3.28% respectively on the day, keeping USD/JPY buoyed.
Traders remain more nervous ahead of the conclusion of Fed’s 2-day policy meeting with the FOMC statement due out later today. The Fed should confirm the neutral stance and keep the "data-dependent" language, while traders are under pricing September's rate hike.
Meanwhile, markets now turn their focus towards US Prelim GDP print due later in the day. While FOMC statement remains in the spotlight.
USD/JPY Technical Levels
To the upside, the next resistance is located at 119.22 (April 28 High) levels and above which it could extend gains 119.44 (April 27 High) levels. To the downside immediate support might be located at 118.51 (April 20 Low) below that at 118.30 (March 26 Low) levels.
USD/JPY back below 119
Currently, the USD/JPY pair trades dead flat at 118.86, hovering around fresh session highs at 118.88 levels. The USD/JPY pair remains directionless, squeezed in a 10-pips extremely narrow range with sellers seem to be getting exhausted near 118.75 – key support, as the pair failed to breach the last on several occasions.
Meanwhile, the major remains supported despite muted USD as rising longer and shorter duration US treasury yields, 10-yr yields at 2% and 2-yields at 0.563% are gaining 1.54% and 3.28% respectively on the day, keeping USD/JPY buoyed.
Traders remain more nervous ahead of the conclusion of Fed’s 2-day policy meeting with the FOMC statement due out later today. The Fed should confirm the neutral stance and keep the "data-dependent" language, while traders are under pricing September's rate hike.
Meanwhile, markets now turn their focus towards US Prelim GDP print due later in the day. While FOMC statement remains in the spotlight.
USD/JPY Technical Levels
To the upside, the next resistance is located at 119.22 (April 28 High) levels and above which it could extend gains 119.44 (April 27 High) levels. To the downside immediate support might be located at 118.51 (April 20 Low) below that at 118.30 (March 26 Low) levels.