FxWirePro: 'Morning Star' pattern formed on USD/JPY daily charts, scope for upside, focus on FOMC meeting

• USD/JPY is trading range bound ahead of the FOMC meeting later today in the US session.
• We see a 'Morning Star' candlestick pattern formed on the daily charts which raises scope for upside.
• The major is hovering around 200-DMA at 111.93, bias remains neutral to slightly bullish.
• Stochs are on verge of rollover from oversold levels, RSI is flat and MACD shows fading downside momentum.
• USD under pressure after US Senate Republican plan to repeal and replace Obamacare failed to get votes needed for approval.
• BOJ Dep Gov Nakaso comments offers some support to the Yen bulls. BOJ’s Nakaso sounded optimistic on the inflation outlook, expects CPI to increase toward 2%.

Support levels - 111.65 (nearly converged 50&100-DMA), 111.25 (cloud top), 111

Resistance levels - 112, 112.65 (20-DMA), 112.41 (July 20 high), 112.92 (June 29 high)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-Possible-Death-Cross-on-USD-JPY-go-short-on-decisive-close-below-200-DMA-815003) has hit TP1&2.

Recommendation: Watch for close above 200-DMA to go long.

FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at 29.4811 (Neutral), while Hourly JPY Spot Index was at -59.7137 (Neutral) at 0540 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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