USDJPY: Around Support Ahead Of FOMC…
As long as 113.16 resistance holds on a daily closing basis, the USDJPY remains in a pullback mode, and further down couldn’t be ruled out. Support comes at 112.55/112.29 levels. A halt is likely, but a cut will turn outlook bearish to 111.75, further down, support comes at 111.05 level.
On the upside, resistance comes at 113.16 level. Above 113.16 aims 113.70. At this point: The USDJPY will have to break and hold above 113.70 to restore the upside momentum. If seen it will target 114.10 level. It may test 113.70 before attempts to break above 114.10. Anyway; next resistance comes at 114.70 level.
Conclusion: The USDJPY sees pullback threats below 113.16, above 113.16 will challenge 113.70 level…
Support: 112.29, 111.75, 111.05, 110.53, 110.05
Resistance: 112.55, 113.16, 113.70, 114.10, 114.70
Note: After losing 112.54, now it serves as short-term resistance…
Key data/events which may affect USDJPY today:
1.Federal Reserve Rate Decision & Press Conference.
The Federal Reserve will announce its federal funds’ rate and publish updated economic projections at its last policy meeting of the year today at 19:00 GMT.
The Federal Reserve is expected to raise interest rates by a quarter point for a fourth time this year (in a range between 2.25%-2.5%) at the conclusion of its two-day policy meeting.
Fed Chair Jerome Powell will hold what will be a closely-watched press conference 30 minutes after the release of the Fed’s statement, as investors look for fresh clues on inflation and the forecast for the coming year.
2.Bank Of Japan Rate Decision.
The Bank of Japan will announce its benchmark interest rate and publish a rate statement tomorrow at 02:00 GMT.
The central bank is expected to keep policy on hold. And keep short-term interest rates at minus 0.1% and the 10-year government bond yield target at around zero percent.