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"The prevailing view of FOMC members is that the market under-prices the risk of further Fed tightening this year, so the risk is that the statement is USD-supportive."
- BNZ (based on WBP Online)
Pair's Outlook
Demand in face of the monthly S1 and the weekly PP around 110.50 was sufficient to prevent the USD/JPY currency pair from falling on Tuesday. As a result, the exchange rate remained on top of the 111.00 psychological level, but risks of the immediate support getting pierced today are higher. Depending on the FOMC meeting the US Dollar could fall down towards the 109.00 major level over the day. On the other hand, the upper border is represented by the down-trend at 112.34, bolstered by the 55-day SMA, the monthly PP and the Bollinger band. However, according to technical indicators, another day of relatively flat trade between 110.50 and 112.00 is possible.
Traders' Sentiment
Bullish market sentiment remains unchanged at 72%, while the portion of buy orders still takes up 70% of the market.
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