USD/JPY Trading in a Narrow Range, FOMC and BoJ Eyed
On Tuesday, the USD/JPY
pair managed to recover during the US trading session just to drift
back towards 111.00 handle during Asian session on Wednesday.
With
the scheduled announcements of monetary policy decisions by the Fed on
Wednesday and BOJ on Thursday, traders seem unwilling to carry heavy
bets ahead of the big event risks. Till that time the pair seems more
likely to oscillate within a narrow trading range.
Technical levels to watch
From
current levels, dip below 111.00 round figure mark might continue to
find support near 110.65-60 area, which if broken could test 110.30
support marking 38.2% Fibonacci retracement level of 107.84-111.86
upsurge. Weakness below 110.30 support now seems to attract fresh
offers, which could accelerate the fall towards 50% Fibonacci
retracement level support near 109.85-80 area.
On the upside, the
pair could immediately aim for 111.30 resistance area. Although
momentum above 111.30 resistance might continue support further
appreciation, but any further up-move might continue to face strong
resistance near 111.90-112.00 round figure mark. Only a sustained
break-through 112.00 mark resistance would pave way for additional
recovery for the pair in the near-term.
