USD/JPY very quiet before Fed's storm


  • Fed rate decision is coming very soon at 18.00 GMT. Get ready. 
  • USD/JPY technical compression seems unsustainable as one side will have to give in. 

The USD/JPY is trading at around 106.30 down 0.20% so far as the FOMC rate decision is quickly approaching. The key question will revolve around how many times the Fed will hike; three or four times in 2018? Another equally important issue will be the impact of tax cuts on the economy. 

After the Fed's rate decision, the FOMC will release its monetary policy’s statement which may provide additional volatility to the USD pairs. 

USD/JPY daily chart

The USD/JPY is trading in yesterday's range ahead of the rate decision. The USD/JPY is in the middle of the 105.50-107.00 range. Both the RSI and MACD are showing a positive divergence, although the RSI is still below the 50 mark. A bullish breakout will see the bulls initially targetting the 107.00 psychological level, followed by the 107.60-108.00 area which was a previous supply zone, later followed by 109.00 which is the 38.2% Fibonacci retracement from the November 2017-March 2018 downtrend. On the flip side, if bears win, support is seen at the 104.00, 102.00 and 100.00 figures.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD hits fresh one-month low amid souring market mood

EUR/USD has been extending its falls and dips below 1.21 as US retail sales badly disappointed and the worsening mood is supporting the safe-haven dollar. Markets digest Biden's stimulus plan. US Consumer Sentiment declined to 59.2 points. 

EUR/USD News

GBP/USD retreats toward 1.36 amid fresh dollar strength

GBP/US has pared its gains and falls toward 1.36 as the dollar gains ground. The UK economy shrank by 2.6% in November, better than estimated. The UK is ramping up its vaccination campaign and PM Johnson is pressured to ease the lockdown. 

GBP/USD News

Gold extends sideways grind near $1,850

The XAU/USD pair registered small daily gains on Thursday but struggled to extend its recovery amid a lack of significant fundamental drivers on Friday. As of writing, the pair was up 0.15% on a daily basis at $1,849.

Gold news

Forex Today: Markets “sell the fact” on Biden's stimulus, dollar rises, retail sales eyed

Markets are on the back foot after Biden hinted about tax hikes while introducing stimulus. The safe-haven dollar is edging higher despite Powell's pledge to keep monetary policy accommodative. 

Read more

DXY breaks above key downtrend, eyes move above 91.00

USD has been strongly supported on what has shaped up to be a very much risk off final trading day of the week. Most G10/USD pairs have seen significant weakness, aside from CHF/USD and JPY/USD, given that the two currencies are also considered “safe havens”.

US Dollar Index News

Forex MAJORS

Cryptocurrencies

Signatures