FxWirePro: USD/JPY hovers around 110.00 levels, bias is neutral,Fed rate decision in focus
USD/JPY was little changed on Tuesday as most investors stayed on the sidelines ahead of a U.S. Federal Reserve meeting that should provide signals on the pace of future monetary tightening. The Fed is widely expected to…
USD/JPY was little changed on Tuesday as most investors stayed on the sidelines ahead of a U.S. Federal Reserve meeting that should provide signals on the pace of future monetary tightening.
The Fed is widely expected to raise interest rates when it concludes its meeting on Wednesday, although investors will focus on any new hints on the pace of hikes this year and its assessment of the economy and inflation.
U.S. producer prices were unchanged in May as energy costs recorded their biggest decline in more than a year, suggesting inflation pressures were easing after rising at the start of the year. Weakening inflation could limit the scope for further monetary policy tightening this year.
To the upside, the strong resistance can be seen at 110.36, a break above this level would take the pair towards next resistance level at 110.80.
To the downside immediate support can be seen at 109.72, a break below this level will open the gates towards next level at 109.34.
