USD/JPY consolidates on a fragile support of the 115 handle before FOMC

Currently, USD/JPY is trading at 115.09, down -0.06% on the day, having posted a daily high at 115.30 and low at 115.07.

The US dollar index weakened slightly further during the NY session before recovering an hour before the close, but USD/JPY is consolidated on the 115 handle still, slightly soft in the Tokyo open. However, this is a fragile level and there is deeper, stronger, support below at 114.70/80 that could hold ahead of the FOMC event as the showdown for the end of the year where markets are fully pricing in a Fed hike of 25bps.

Analysts at Westpac offered a snapshot preview: "A Fed funds rate hike to a 0.50%-0.75% range is widely expected (and priced in by markets). Thus, any surprises will come from the tone of the statement and Yellen’s press conference. Also of interest will be the updated economic forecasts and Fed funds rate projection, with markets currently fully agreeing with the two hikes projected in 2018."

USD/JPY levels

With spot trading at 115.11, we can see next resistance ahead at 115.17 (Daily Open), 115.23 (Hourly 20 EMA), 115.24 (Monthly High), 115.24 (Weekly High) and 115.30 (Daily High). Support below can be found at 115.07 (Daily Low), 114.74 (Hourly 100 SMA), 114.73 (Yesterday's Low), 114.54 (Daily Classic S1) and 114.50 (Weekly Classic PP). 

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