FxWirePro- Currency Strength Index (4- Hour chart)- Currency pairs to watch(USDCAD and CADJPY) for the day
FxWirePro: USD/JPY consolidates previous session's gains, rangebound above 21-EMA
Chart - Courtesy Trading View
USD/JPY was trading largely muted at 114.63 at around 05:35 GMT, outlook is turning bullish.
The pair is consolidating previous session's gains and is holding above 21-EMA support.
The dollar closed over 0.60% higher on Wednesday following the US Federal Reserve monetary policy decision.
As widely anticipated, the Fed left rates and taper unchanged, while chairperson Jerome Powell signalled plans to steadily tighten policy.
The statement indicates that “ the Committee expects it will soon be appropriate to raise the target range for the federal funds rate.”
That said, Powell warned that inflation remains above the Fed's long-run goal and supply chain issues may be more persistent than previously thought.
Technical bias for the pair has turned bullish after price action bounced off daily cloud and major trendline support.
The pair finds immediate resistance at 20-DMA at 114.78. Break above will fuel further gains.