- The greenback trades almost unchanged vs. its Japanese peer today.
- Yields of the key US 10-year note are hovering over 2.72%.
- FOMC event and press conference by J.Powell next of relevance.
USD/JPY keeps looking for direction so far this week and is now extending the rangebound pattern in the low-109.00s.
USD/JPY focused on Fed
Spot remains sidelined just above 109.00 the figure so far this week, imitating the performance of US 10-year yields, which keep gyrating around the 2.72% area.
In addition, and supporting the ongoing consolidation, the broad risk-appetite trends continue to show no clear direction amidst a generalized cautious tone ahead of the FOMC meeting and the omnipresent uncertainty surrounding the Brexit negotiations.
Looking ahead, the Federal Reserve is expected to keep rates unchanged at today’s meeting. The subsequent press conference by Chief Powell, however, could shed more light on the Fed’s plans for the balance sheet and prospects of re-assessing its forward guidance for the current year.
USD/JPY levels to consider
As of writing the pair is losing 0.03% at 109.35 and a breach below 109.13 (low Jan.29) would aim for 108.97 (21-day SMA) and then 107.77 (low Jan.10). On the other hand, the next up barrier aligns at 109.99 (2019 high Jan.23) followed by 111.24 (200-day SMA) and then 111.40 (high Dec.26 2018).
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