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16 Sep 2015
USD/JPY: Where is this going? FOMC will dictate
FXStreet (Guatemala) - With Asia opening higher, following from a positive Wall Street close, USD/JPY has been pressured to the downside penetrating hr 50 SMA at 120.39 on the hourly chart from the highs of 120.48.
USD/JPY awaits FOMC
USD/JPY has been in recovery mode of the downside from the 120.60 level of yesterday's business and has made a v-shaped recovery, but failed at yesterday's 20 SMA high. From the US session, the data was not quite the last major influx bullishness that might sway the FOMC towards a hike. We still have the CPI's left to show that perhaps these too are not quite high enough for a rate hike either, but still there are those in the bullish camp that still see a hike coming.
"The September FOMC meeting remains a very close call, with the Fed hiking in our base case. The macroeconomic data largely appear good enough for the FOMC- at least if the majority of Fed speeches over the past several months, culminating in Vice Chair Stanley Fischer's remarks at Jackson Hole, are any guide," explained analysts at Bank of America Merrill Lynch.
USD/JPY technicals soft
Technically, the pair is in neutral territory with the momentum indicators and bearish trend indicators toning down. The 200 day MA (120.82) is still the key resistance to the upside and pressures are to the downside while trading below here. 119.40 is the target to the downside ahead of 118.40 and 116.15.
USD/JPY awaits FOMC
USD/JPY has been in recovery mode of the downside from the 120.60 level of yesterday's business and has made a v-shaped recovery, but failed at yesterday's 20 SMA high. From the US session, the data was not quite the last major influx bullishness that might sway the FOMC towards a hike. We still have the CPI's left to show that perhaps these too are not quite high enough for a rate hike either, but still there are those in the bullish camp that still see a hike coming.
"The September FOMC meeting remains a very close call, with the Fed hiking in our base case. The macroeconomic data largely appear good enough for the FOMC- at least if the majority of Fed speeches over the past several months, culminating in Vice Chair Stanley Fischer's remarks at Jackson Hole, are any guide," explained analysts at Bank of America Merrill Lynch.
USD/JPY technicals soft
Technically, the pair is in neutral territory with the momentum indicators and bearish trend indicators toning down. The 200 day MA (120.82) is still the key resistance to the upside and pressures are to the downside while trading below here. 119.40 is the target to the downside ahead of 118.40 and 116.15.