• Japanese yen weakens amid a Treasury sell-off.
  • Market participants are looking at the FOMC meeting, Fed is set to raise rates by 75 bps.
  • USD/JPY with a bullish bias in the short term.

The USD/JPY rose from under 143.00 to 143.92, reaching the highest level in almost a week as US yields jumped on the day the two-day FOMC meeting started. At the same time, stocks in Wall Street were falling by 0.85% on average.

Dollar strengthens ahead of the FOMC

The US 10-year bond yield jumped to 3.59%, hitting levels not seen since January 2011.  European bond yields also rose. The decline in bonds weakened the Japanese yen, that dropped across the board during the American session.

The greenback printed fresh daily highs and then moved off highs. The DXY peaked at 110.27, the highest level since September 7 and then pulled back toward 110.00.

US economic data released on Tuesday came in mixed, with a sharp gain in August Housing Starts and a decline in Building Permits. The focus is on the Federal Reserve, that is expected to announce on Wednesday a 75 basis points rate hike. Prices are moving mostly sideways, on a wait-and-see mode ahead of the key event.

The USD/JPY is moving with a bullish bias, currently holding above the 143.50 support area. Above the next barrier is seen at 144.40. On the flip side, the 142.75/85 zone is the critical short-term support area.

Technical levels

USD/JPY

Overview
Today last price 143.7
Today Daily Change 0.50
Today Daily Change % 0.35
Today daily open 143.2
 
Trends
Daily SMA20 140.94
Daily SMA50 137.7
Daily SMA100 134.92
Daily SMA200 126.62
 
Levels
Previous Daily High 143.64
Previous Daily Low 142.64
Previous Weekly High 144.96
Previous Weekly Low 141.66
Previous Monthly High 139.08
Previous Monthly Low 130.4
Daily Fibonacci 38.2% 143.26
Daily Fibonacci 61.8% 143.03
Daily Pivot Point S1 142.68
Daily Pivot Point S2 142.16
Daily Pivot Point S3 141.68
Daily Pivot Point R1 143.68
Daily Pivot Point R2 144.16
Daily Pivot Point R3 144.68

 

 

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