USD/JPY erases daily gains ahead of the FOMC meeting
|- USD/JPY extends bearish correction from 3-week highs despite US data.
- Key event ahead: FOMC decision at 18:00 GMT and Powell press conference at 18:30 GMT.
The USD/JPY pair dropped further after the beginning of the US session and
The pair was hovering around 110.40, practically flat for the day. The intraday tone now points to the downside, but if it rises back on top of 110.50 the greenback could recover strength.
Data before the FOMC
The PPI rose in May 0.5% and 3.1% from a year ago. Both numbers were above market consensus but had no impact on the US dollar. The greenback continued to move lower ahead of the FOMC meeting.
The Federal Reserve is expected to hike the Fed Funds rate by 25bp. Market participants will be looking at the updated projections from the FOMC staff (the “dot-plot”). At 18:30 GMT, Fed Chair Powell will
USD/JPY Short-term technical levels
To the downside, support levels now might be seen at 110.25, followed by 110.05/10 (20-SMA in 4 hours chart) and 109.70. On the upside, immediate resistance could be located at 110.50/55, 110.70/80 and then 111.00.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.