USD/JPY chart on Trading View used for analysis
- USD/JPY trades largely muted on the day, holds above 5-DMA.
- The major bounced back from multi-week lows hit on Monday's trade as risk sentiment improved across markets.
- Major trend in the pair is bullish, bears struggling to extend drag below 55-EMA.
- Further recovery in global stocks can dent yen demand, pushing the pair higher. Breakout above 21-EMA could see resumption of uptrend.
- Focus on FOMC minutes will likely provide important context for some of the decisions at the September meeting.
- Analysts at nomura expect the minutes for the September meeting to emphasize the Committee’s expectation of another rate hike in December, the fourth of 2018.
- Below 55-EMA finds next major support at 111.75 (major trendline support).
- On the flip side, break above 21-EMA eyes 113.17 (July 19th high) ahead of 114.55 (Oct 4th high)
Support levels - 112.04 (55-EMA), 111.75 (trendline), 110.76 (38.2% Fib)
Resistance levels - 112.58 (21-EMA), 113.17 (July 19th high), 114.55 (Oct 4th high)
For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
