USD/JPY: waiting for FOMC's Minutes

Valeria Bednarik FXStreet

USD/JPY Current price: 112.26

Asian equities gained, European ones having trouble to follow that lead.
US housing data and FOMC's Minutes awaited.

The USD/JPY pair retreats from a daily high of 112.39, now hovering around 112.25 after London's opening, confined to a measly 30 pips range ever since the day started. The lack of direction during Asian trading hours is the result of rising equities, usually a bullish factor for the pair, and absent demand for the greenback. European indexes are having trouble to follow the lead of their Asian counterparts, leaning the scale to the downside, although US Treasury yields remain steady, limiting the risk of a steeper decline.

There were no macroeconomic releases in Japan, and the US will release housing data, but also the FOMC Meeting's Minutes, with market players probably waiting for this last event before taking positions on USD/JPY.

The 4 hours chart for the pair shows that the early advance was contained by selling interest around a flat 200 SMA, while technical indicators have lost directional strength after entering positive ground, reflecting the current quietness rather than suggesting a certain upcoming direction. An acceleration through the mentioned 200 SMA, currently at around 112.40, could favor another leg higher but will depend on broad dollar's strength or weakness. The main support continues being the 100 DMA at around 111.50, a level unlikely to be tested today.

Support levels: 111.90 111.50 111.20

Resistance levels: 112.40 112.85 113.10

View Live Chart for the USD/JPY

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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