USD/JPY is trading weak after FOMC meeting, decline till 118.16 is possible

• RES3 :120.08 (Apr 22^nd high)
  
  
• RES 3: 119.74 (200 day 4HMA)
  
  
• RES 2: 119.45 (27^th Apr High)

• RES 1: 118.99 (20 day 4HMA)

PRICE: 118.83 @ 05:20 GMT 

• SUP 1: 118.50 (Apr 20^th low)

• SUP 2: 118.16 (61.8% retracement of 115.85 and 122.01)

• SUP 3 -116.85 (Feb 3^rd low)

• SUP4-115.85

COMMENTARY:

USD/JPY is trading off its lows after FOMC statement. The April FOMC statement acknowledged the soft Q1 data but blamed transitory reasons.

Further, the pace of job gains moderated, underutilisation of labour resources was little changed, growth in household spending declined; Business fixed investment softened, the recovery in the housing sector remained slow and exports declined. The interest rate hike will be dependent on data which will be released in Q2. So FED unlikely to hike interest rates in Jun but it is expected to hike Sep month.

Technically Short term bullish invalidation level-118.16. Any break below 118.16 will drag the pair further down till 116.85/115.90 in short term.

On the upside minor resistance is around 119.45 and any break above would extend gains till 119.74/120.08.

Indicator (4 hour chart)

CCI (50) - Sell

Woodies CCI (14) - Sell

Ichimoku- Sell

It is good to Sell on rallies around 119.30 for the target of 118.15 with stop around 119.80.