USD/JPY flat below 112.00 ahead of FOMC

Pablo Piovano FXStreet

The greenback stays almost unchanged vs. its Japanese counterpart on Wednesday, with USD/JPY gravitating around the 111.80 region for the time being.

USD/JPY attention to Fed

Spot is looking to extend the positive streak today, returning to the 111.80 region after briefly surpassing the critical 112.00 handle during overnight trade.

The pair’s performance keeps its correlation with yields in the US money markets well and sound so far, where the key 10-year reference has retraced the earlier spike and is now hovering over the 2.28% handle.

In the data space, the Japanese Leading Index matched expectations at 105.5, while Existing Home Sales and the EIA’s report are next on tap in the US docket ahead of the FOMC minutes.

USD/JPY levels to consider

As of writing the pair is up 0.01% at 111.79 and a breakout of 112.05 (high May 24) would open the door to 112.43 (20-day sma) and finally 112.59 (100-day sma). On the other hand, the immediate support is located at 111.62 (55-day sma) seconded by 111.25 (50% Fibo of 108.11-114.39) and then 110.84 (low May 23).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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