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USD/JPY Price Analysis: Consolidates before Fed’s decision

USD/JPY will remain subdued as traders await the US Federal Reserve.
Caution is warranted, given the fact that oscillators are giving mixed signals.
USD/JPY Price Analysis: Short-term, a bearish continuation is likely; otherwise, buyers can reclaim 133.00.

Christian Borjon Valencia FXStreet

USD/JPY remains in choppy trading price action, with investors eyeing Wednesday’s US Federal Reserve decision. At the time of typing, the USD/JPY pair exchanges hands at around 132.50s after traveling from a daily low of 132.25 and hitting a high at 133.00.

USD/JPY Price action

The USD/JPY pair trades nearby the weekly highs, though it remains sideways. The Exponential Moving Averages (EMAs) in the daily chart turned flat, while oscillators like the Relative Strength Index (RSI) and the Rate of Change (RoC) give mixed signals.

In the short-term, the USD/JPY 4-hour chat paints the pair as downward biased, trading below the 50, 100, and 200-EMAs. Also, a three-week-old downslope resistance trendline would cap any rallies should the USD/JPY exceed the 133.50 area.

For a bearish continuation, the USD/JPY is backed by oscillators, like the RSI is about to turn bearish, while the RoC portrays buying pressure waning. That said, the USD/JPY first support would be the 20-EMA at 132.38. A breach of the latter could send the pair to the daily pivot at 132.04, followed by a drop to the S1 pivot point at 131.46. Once cleared, the USD/JPY would challenge the 131.00 figure.

In an alternate scenario, the USD/JPY first resistance would be the R1 pivot at 133.06. Once broken, the pair would immediately test the 50-EMA at 133.11, followed by the R2 daily pivot point at 133.64, ahead of the confluence of the 100/200-EMAs at 133.76/77.

USD/JPY 4-hour chart

USD/JPY Technical levels

USD/JPY

Overview
Today last price	132.6
Today Daily Change	0.09
Today Daily Change %	0.07
Today daily open	132.51

Trends
Daily SMA20	134.93
Daily SMA50	132.53
Daily SMA100	134.95
Daily SMA200	137.45

Levels
Previous Daily High	132.63
Previous Daily Low	131.04
Previous Weekly High	135.12
Previous Weekly Low	131.56
Previous Monthly High	136.92
Previous Monthly Low	128.08
Daily Fibonacci 38.2%	132.02
Daily Fibonacci 61.8%	131.64
Daily Pivot Point S1	131.49
Daily Pivot Point S2	130.47
Daily Pivot Point S3	129.9
Daily Pivot Point R1	133.08
Daily Pivot Point R2	133.65
Daily Pivot Point R3	134.67

Author

Christian Borjon Valencia

FXStreet

Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.

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