- USD/JPY retraces previous session's losses, edges above 5-DMA at 110.05.
- USD buying picks-up pace across the board as markets head into a 2-day FOMC meeting that commences today.
- High probability of Greenback sustaining the corrective up move post the FOMC meeting on Wednesday.
- 200-DMA at 110.40 is stiff resistance and we see further upside only on break above.
- Technical indicators are not conclusive, RSI flat-lined below 50 level and MACD still bias lower.
- Market have largely priced in a rate hike from the Fed, the statement will be key for driving market sentiment.
Support levels - 110.05 (5-DMA), 110, 109.25 (trendline), 109.11 (June 7th low)
Resistance levels - 110.40 (200-DMA), 110.61 (23.6% Fib of 118.662 to 108.130 fall), 110.80 (20-DMA)
Recommendation: We prefer to wait for clear directional bias
FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at 14.6514 (Neutral), while Hourly JPY Spot Index was at -4.40843 (Neutral) at 0715 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
