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28 Jan 2015
USD/JPY searching for direction, FOMC eyed
FXStreet (Córdoba) - USD/JPY continues to zigzag within its recent range, unable to set short-term direction, as investors gear up for the Federal Reserve policy statement looking for cues about the timing of the first rate hike.
USD/JPY has been unable to break above the 118.65/85 resistance area in every attempt over the last days, confining the pair to a sideways phase, contained by the 117.20 area on the downside. At time of writing, dollar-yen is trading at 117.68, recording a 0.14% loss on the day.
FOMC statement in focus
Today’s FOMC decision could act as catalyst for USD/JPY. There will be no press conference or economic projections, so focus will be on the tone of the statement to see whether the Fed will remain “patient” approach to hiking rates.
USD/JPY levels to watch
As for technical levels, USD/JPY could find next supports at 117.25 (Jan 26 low) and 117.00 (psychological level). On the other hand, resistances are seen at 118.25 (daily high), 118.65 (Jan 27 high) and 118.85 (Jan 20 high) ahead of 119.00 (psychological level).
USD/JPY has been unable to break above the 118.65/85 resistance area in every attempt over the last days, confining the pair to a sideways phase, contained by the 117.20 area on the downside. At time of writing, dollar-yen is trading at 117.68, recording a 0.14% loss on the day.
FOMC statement in focus
Today’s FOMC decision could act as catalyst for USD/JPY. There will be no press conference or economic projections, so focus will be on the tone of the statement to see whether the Fed will remain “patient” approach to hiking rates.
USD/JPY levels to watch
As for technical levels, USD/JPY could find next supports at 117.25 (Jan 26 low) and 117.00 (psychological level). On the other hand, resistances are seen at 118.25 (daily high), 118.65 (Jan 27 high) and 118.85 (Jan 20 high) ahead of 119.00 (psychological level).