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USD/JPY Challenging Falling Resistance after Fed Statement

The Fed held the benchmark interest rate in the range of 0.75%-1%. The vote was highly expected especially with underwhelming first quarter growth and inflation. Still, the Fed's tone sounded relatively optimistic and confirmed the guidance of two more interest rate hikes in 2017. The USD got a boost after this event risk. Let's take a look at the USD/JPY.

USD/JPY Daily Chart

(click to enlarge)

Attacking Resistance:
- The 4H chart shows that price is pushing at 113.00. Meanwhile, price is cracking the falling trendline coming down from the 118.65 high set in early January 2017. 
- A clear break and close above 113.00 this week should open up the 115.60 resistance from a previous consolidation range.
- However, a break below 112 would suggest a failed bullish attempt at breaking the resistance. 
- Still, the area around 111.60 could still provide some support.

Awaiting US NFP Report:
- Let's see what happens after Friday's US Non-Farm Payroll report.
- This even risk can be as much a market mover as the Fed decision.
- A disappointing result for the labor market in April can cause the USD/JPY to turn down from 113.
- However, a stronger-than expected reading can push price to 113.50. As noted above, this scenario opens up the 115.60. 

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