USDJPY like many other USD majors are waiting for the FEDs interest rate decision. To be more accurate the main focus will be the Fed Chair Jerome Powell’s statement, as a quarter rate cut is already priced in by investors. If the FED is optimistic about the future and does not hint at more easing – USDJPY may rise and if the FED is dovish the pair is likely to trade lower.
4HTF – The pair has closed Monday’s GAP that occurred after Saturday’s oil production plant attack in Saudi Arabia and the pair is now consolidating around 108.193.
Hawkish FED and Long position target areas are at resistance: 108.969 followed by 109.310 and then 109.731.
Dovish FED and Short position target areas are at 23.6% Fibo 107.445, then 38.2% Fibo 106.872, followed by the 50% Fibo at 106.409 and finally 61.8% Fibo 105.945.
Let us not forget that there is always the possibility that the rate may be left unchanged and/or the FED may fail to give hints on further FED action, in which case price movement may be limited.
4HTF – The pair has closed Monday’s GAP that occurred after Saturday’s oil production plant attack in Saudi Arabia and the pair is now consolidating around 108.193.
Hawkish FED and Long position target areas are at resistance: 108.969 followed by 109.310 and then 109.731.
Dovish FED and Short position target areas are at 23.6% Fibo 107.445, then 38.2% Fibo 106.872, followed by the 50% Fibo at 106.409 and finally 61.8% Fibo 105.945.
Let us not forget that there is always the possibility that the rate may be left unchanged and/or the FED may fail to give hints on further FED action, in which case price movement may be limited.