- Fed rate decision is coming very soon at 18.00 GMT. Get ready.
- USD/JPY technical compression seems unsustainable as one side will have to give in.
The USD/JPY is trading at around 106.30 down 0.20% so far as the FOMC rate decision is quickly approaching. The key question will revolve around how many times the Fed will hike; three or four times in 2018? Another equally important issue will be the impact of tax cuts on the economy.
After the Fed's rate decision, the FOMC will release its monetary policy’s statement which may provide additional volatility to the USD pairs.
USD/JPY daily chart
The USD/JPY is trading in yesterday's range ahead of the rate decision. The USD/JPY is in the middle of the 105.50-107.00 range. Both the RSI and MACD are showing a positive divergence, although the RSI is still below the 50 mark. A bullish breakout will see the bulls initially targetting the 107.00 psychological level, followed by the 107.60-108.00 area which was a previous supply zone, later followed by 109.00 which is the 38.2% Fibonacci retracement from the November 2017-March 2018 downtrend. On the flip side, if bears win, support is seen at the 104.00, 102.00 and 100.00 figures.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended content
Editors’ Picks
EUR/USD stays in positive territory above 1.0850 after US data
EUR/USD clings to modest daily gains above 1.0850 in the second half of the day on Friday. The improving risk mood makes it difficult for the US Dollar to hold its ground after PCE inflation data, helping the pair edge higher ahead of the weekend.
GBP/USD stabilizes above 1.2850 as risk mood improves
GBP/USD maintains recovery momentum and fluctuates above 1.2850 in the American session on Friday. The positive shift seen in risk mood doesn't allow the US Dollar to preserve its strength and supports the pair.
Gold rebounds above $2,380 as US yields stretch lower
Following a quiet European session, Gold gathers bullish momentum and trades decisively higher on the day above $2,380. The benchmark 10-year US Treasury bond yield loses more than 1% on the day after US PCE inflation data, fuelling XAU/USD's upside.
Avalanche price sets for a rally following retest of key support level
Avalanche (AVAX) price bounced off the $26.34 support level to trade at $27.95 as of Friday. Growing on-chain development activity indicates a potential bullish move in the coming days.
The election, Trump's Dollar policy, and the future of the Yen
After an assassination attempt on former President Donald Trump and drop out of President Biden, Kamala Harris has been endorsed as the Democratic candidate to compete against Trump in the upcoming November US presidential election.