If the FOMC does pause on further rate hikes as forecasted, this is likely to cause further weakness in the DXY (read DXY analysis)
Weakness in the DXY could see the USDJPY trade lower. The USDJPY has been range bound since the start of June, trading between the resistance of 140.40 and support of 138.74.
Currently trading along the 140 price level, weakness in the DXY could see the price reverse lower, back down to the support level. Similar to the price action on the 5th of June.
A surprise rate hike from the FOMC could see the USDJPY rise, but the upside would be limited with the next key resistance level around 141 (the previous swing high at the end of May) and also with the increasing belief that any surprise rate hike would be the last to come from the FOMC.
Weakness in the DXY could see the USDJPY trade lower. The USDJPY has been range bound since the start of June, trading between the resistance of 140.40 and support of 138.74.
Currently trading along the 140 price level, weakness in the DXY could see the price reverse lower, back down to the support level. Similar to the price action on the 5th of June.
A surprise rate hike from the FOMC could see the USDJPY rise, but the upside would be limited with the next key resistance level around 141 (the previous swing high at the end of May) and also with the increasing belief that any surprise rate hike would be the last to come from the FOMC.
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