USD/JPY technical analysis: Set-up seems tilted in favour of bulls, FOMC awaited for fresh impetus

  • 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
Daily SMA20 106.83
Daily SMA50 107.12
Daily SMA100 108.05
Daily SMA200 109.38
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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