USD/JPY is on the bid, rising from the 104.08 lows and set to make a full point on the minor recovery of the sell-off from 106.34 highs of 24th July business.
USD/JPY came under pressure in a turn-around in sentiment for BoJ expectations this week with Japan’s Finance Minister who was suggesting that the government had not decided on the scale of additional fiscal stimulus.
USD/JPY was the story overnight - Scotiabank
So, we now await the FOMC outcome before the BoJ. While the Fed are not expected to hike, a hawkish tone could set the dollar on the rampage with a run of better than expected data and an improved Q2 making for a better outcome in H2 enabling the Fed to act accordingly by potentially hiking interest rates, potentially pushing USD/JPY on the way back towards July highs.
Main eyes are now on the Fed until BoJ: FOMC meeting: yes, it will be hawkish; no, it won't matter
USD/JPY levels
Valeria Bednarik, chief analyst at FXStreet explained that "in the 4 hours chart, the technical indicators maintain modest bearish slopes near oversold territory, while the 100 and 200 SMAs converge in the 104.00/10 region, indicating that renewed selling interest through the level, will end up at fresh lows closer to the 103.00 level." However, the 100 sma is up through the 200 sma and that is now a bullish signal with the correction continuing to make headway with 105.41 21st July lows as first target.
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