27 Jul 2015
USD/JPY: FOMC to set the tone - FXStreet
FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that USD/JPY was confined to a 100 pips range last week, unable to advance beyond the 124.00 figure, but holding nearby and finding buying interest on approaches to the 123.30 support.
Key Quotes:
"The upcoming FOMC meeting in the US, could well be the trigger the pair needs to set a more directional tone, as if the Central Bank increases hopes of a September rate hike, the pair may get an unexpected boost towards its highs beyond 125.00. A dovish US FED however, should lead to a stronger bearish move, down to 122.40, the 50% retracement of the latest bullish run in the pair."
"Technically, the daily chart shows that the price holds well above its moving averages, whilst the Momentum indicator heads north above the 100 SMA and the RSI indicator consolidates around 54, all of which should continue keeping the downside limited."
"In the 4 hours chart however, the technical indicators present a mild negative tone, as their holding below their mid-lines. Nevertheless and due to the recent restricted range, intraday indicators lack directional strength. At this point the pair needs to extend beyond 124.45 to confirm a new leg higher towards the 125.00 region."
Key Quotes:
"The upcoming FOMC meeting in the US, could well be the trigger the pair needs to set a more directional tone, as if the Central Bank increases hopes of a September rate hike, the pair may get an unexpected boost towards its highs beyond 125.00. A dovish US FED however, should lead to a stronger bearish move, down to 122.40, the 50% retracement of the latest bullish run in the pair."
"Technically, the daily chart shows that the price holds well above its moving averages, whilst the Momentum indicator heads north above the 100 SMA and the RSI indicator consolidates around 54, all of which should continue keeping the downside limited."
"In the 4 hours chart however, the technical indicators present a mild negative tone, as their holding below their mid-lines. Nevertheless and due to the recent restricted range, intraday indicators lack directional strength. At this point the pair needs to extend beyond 124.45 to confirm a new leg higher towards the 125.00 region."