USD/JPY analysis: pressuring key resistance post-FOMC
|USD/JPY Current price: 112.40
- USD finding support in local data and hawkish Fed's statement.
- Japan trade balance and Kuroda speech up next.
The USD/JPY pair traded between 112.00 and 112.40 for most of the day, seeing some action just after the release of FOMC Meeting's Minutes, as the American currency got a nice boost from the document, showing that policymakers discussed the possibility of rising rates above which they consider a neutral level. Movements were, however, limited, as US Treasury yields advanced with the document. The pair was mute in the past Asian session amid the absence of local news, coming under mild pressure during European trading hours amid the sour tone of equities. Wall Street's recovery on another round of solid earnings reports, kept it above the 112.00 level.
Japan will release this Thursday, September trade balance data with the trade deficit forecasted at ¥-50.0B from the previous ¥-438.4B. Imports for the same month are seen sharply up, although Exports are expected to have posted a modest 1.9% increase. BOJ's Governor Kuroda is due to speak at the central bank quarterly branch managers' meeting, in Tokyo.
Technically, the pair seems poised to extend its advance, now challenging the 200 SMA in the 4 hours chart after being unable to surpass it ever since the week started, and technical indicators in the mentioned chart heading sharply higher, both in positive ground. The pair would need to surpass now the 112.60 static resistance level to be able to extend its advance during the upcoming sessions.
Support levels: 112.20 111.90 111.50
Resistance levels: 112.60 113.00 113.45
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