USD/JPY Cracking Range Resistance ahead of the Fed Decision

USD/JPY 4H Chart 12/12/2012 8:50AM EST

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Consolidation range, bullish stance: The USD/JPY has been trapped in a consolidation range since hitting 82.82 on November 22. It ranged down to the 81.68 level for support, and the 82.20 area was seen as a central pivot. Note that during this consolidation, the 4H RSI reading held mostly above 40, and even kissed 70 . The latest push above 60 is a sign of maintenance and continuation of the bullish momentum. The moving averages in the 4H chart are in bullish alignment.

As USD/JPY pushes above the 82.82 high during the 12/12 European-US session, before the FOMC decision, it is in a bullish stance.

FOMC, Bernanke:
The FOMC is scheduled to give a statement at 12:45PM EST, after which Bernanke will hold a press conference at 2:15PM EST.

If there is a more clear upside breakout after the risk events, USD/JPY continues a bullish trend since almost the 77.00 handle in September, which has the 2012-high of 84.19 in sight. A break below 82.20 suggests more consolidation, and a break below 81.65 would be a sign of bearish correction ahead.

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