USD/JPY Tokyo open: 30 pip round-turn, back to square-one awaiting FOMC

Currently, USD/JPY is trading at 111.54, down -0.05% on the day, having posted a daily high at 111.66 and low at 111.46.

USD/JPY is relatively steady in the Tokyo opening hour, moving approx 30 pip round turn in a consolidation around the midpoint of the 111 handle while traders soak up the price action overnight and gauge the market's foresight ahead of the FOMC showdown tonight. 

However, there is little to go from, as price action was erratic in the pair on two-way choppy business around Trump's address at the UN. The dollar was sold off into the closing hours of the US session, while US 10yr yields rose from 2.21% to 2.24% (a fresh one-month high). The Fed fund futures yields continued to price the chance of a December rate hike at 56%.

USD/JPY levels

Valeria Bednarik, chief analyst at FXStreet explained that the pair is biased higher according to technical readings in the 4 hours chart, as technical indicators  are aiming to regain the upside, with the Momentum bouncing from its 100 level, and the RSI around 64, whilst the price remains well above moving averages, both converging around 109.70. 

"Upcoming direction anyway, will depend on how the market takes Fed's announcement on monetary policy, as if it´s seen dovish, the pair can return towards the 110.00 price zone," Valeria added.