Today the USD will be faced with the major news and report- the FOMC Federal Funds rate decision. Besides the official rate announcement, the report includes the FOMC's projection for inflation and economic growth over the next two years and, a breakdown of individual FOMC member's interest rate forecasts.
Technically, the USD/JPY broke the inner trend line (green) and since then has been in a retracement. However, we can see a hidden bearish divergence has been formed that cues for a trend continuation. Since the primary trend is down, we could see rejection from 106.30-40 towards 106.00, 105.80, 105.50. 4h candle close below W L3 aims for 105.03. For bulls to have the upper hand, only a strong momentum and 4h close above 106.70 should spike the pair towards 107.13.W L3 - Weekly Camarilla Pivot (Weekly Interim Support)
W H3 - Weekly Camarilla Pivot (Weekly Interim Resistance)
W H4 - Weekly Camarilla Pivot (Strong Weekly Resistance)
M H4 - Daily Camarilla Pivot (Very Strong Monthly Resistance)
M L3 – Daily Camarilla Pivot (Monthly Support)
M L4 – Daily H4 Camarilla (Very Strong Monthly Support)
POC - Point Of Confluence (The zone where we expect price to react aka entry zone)
Interested in USDJPY technicals? Check out the key levels
The analysis and the article presents Nenad's opinion. Remember, financial trading is highly speculative & may lead to the loss of your funds. Proper risk management is the Holy Grail of trading.
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