- The pair consolidates in a range ahead of the highly anticipated FOMC decision.
- Weekly bearish gap opening lows marks key pivotal support on the downside.
The USD/JPY pair extended its sideways consolidative price action and remained confined in a narrow trading band through the mid-European session on Wednesday, awaiting the outcome of the highly anticipated FOMC meeting.
The fact that the pair has managed to hold its neck above the 108.00 round-figure mark and also found acceptance above 100-day SMA for the first time since early-May, the set-up might have already shifted in favour of bullish traders.
Adding to this, technical indicators on hourly/daily charts have been holding in the bullish territory and add credence to the constructive outlook, supporting prospects for an extension of the recent recovery move from multi-month lows.
However, traders are likely to wait for a strong follow-through buying before positioning for any further near-term appreciating move, possibly beyond the 109.00 handle towards testing the very important 200-day SMA, around the 109.40 region.
On the flip side, any meaningful pullback below the 108.00 handle might continue to attract some dip-buying near the weekly bearish gap swing lows, around mid-107.00s, which if broken might negate the near-term bullish outlook.
Failure to defend the mentioned support might now turn the pair vulnerable to slide back below the 107.00 handle and head towards testing a previous strong horizontal resistance breakpoint, now turned support near the 106.75-70 region.
USD/JPY daily chart
|Today last price||108.18|
|Today Daily Change||0.07|
|Today Daily Change %||0.06|
|Today daily open||108.11|
|Previous Daily High||108.37|
|Previous Daily Low||108.02|
|Previous Weekly High||108.26|
|Previous Weekly Low||106.76|
|Previous Monthly High||109.32|
|Previous Monthly Low||104.45|
|Daily Fibonacci 38.2%||108.16|
|Daily Fibonacci 61.8%||108.24|
|Daily Pivot Point S1||107.97|
|Daily Pivot Point S2||107.82|
|Daily Pivot Point S3||107.62|
|Daily Pivot Point R1||108.32|
|Daily Pivot Point R2||108.52|
|Daily Pivot Point R3||108.67|
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