USD/JPY side-lined below 109.00 ahead of FOMC decision

  • USD/JPY undermined by US-China trade deal jitters-led risk aversion.
  • All eyes on the US ADP jobs data and FOMC rate decision for fresh direction.

The USD/JPY pair is seen in a phase of consolidation in early Europe, having failed to regain the 109 handle on several occasions in the Asian trades this Wednesday.

Fed rate decision in focus

The spot sticks to its recent trading range below the 109 handle, as the tepid risk sentiment, in light of a potential delay in the signing of the US-China trade deal, continues to favor the safe-haven Yen.

A US administration official said on Tuesday, an interim US-China trade agreement might not be completed in time for signing in Chile next month as expected. This spooked the markets and sent the Wall Street stocks stumbling, with the Asian equities tracking its US peers lower. The Japanese benchmark, the Nikkei 225 index, closed 0.60% lower.

Moreover, the pair’s upside remains capped amid negative tone seen in the US Treasury yields and US dollar across the board in the run-up to the expected Federal Reserve (Fed) 25-bps rate cut due later today at 1800 GMT.

However, the bears remain cautious, as the US dollar could likely see rebound versus its main rivals on the Fed announcements, as a rate cut is widely priced-in by the markets and hence, “buy the fact” trading cannot be ruled out.  

Ahead of the FOMC decision, the major also awaits the US ADP Employment Change data for some fresh trading incentives, as trade and political headlines continue to dominate.

USD/JPY Technical levels


Today last price 108.85
Today Daily Change -0.03
Today Daily Change % -0.03
Today daily open 108.88
Daily SMA20 108.16
Daily SMA50 107.56
Daily SMA100 107.58
Daily SMA200 109.06
Previous Daily High 109.02
Previous Daily Low 108.75
Previous Weekly High 108.78
Previous Weekly Low 108.25
Previous Monthly High 108.48
Previous Monthly Low 105.74
Daily Fibonacci 38.2% 108.85
Daily Fibonacci 61.8% 108.91
Daily Pivot Point S1 108.75
Daily Pivot Point S2 108.62
Daily Pivot Point S3 108.48
Daily Pivot Point R1 109.02
Daily Pivot Point R2 109.15
Daily Pivot Point R3 109.28



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