Partner Center Find a Broker

What a weak session for the dollar!

As markets wait for the Fed’s policy statement and presser, I’m setting my sights on USD/JPY’s potential support and resistance levels.

Before we look at the setups, check out the major headlines that affected the major currencies during the Asian session:

Currency Snapshot

Major Forex Pairs Price Performance from MarketMilk
Major Forex Pairs Price Performance from MarketMilk

Fresh Market Headlines & Economic Data:

Upcoming Potential Catalysts on the Economic Calendar:

  • France’s industrial production at 6:45 am GMT
  • U.S. CPI data at 12:30 pm GMT
  • FOMC statement and presser at 6:00 pm GMT

What to Watch: USD/JPY

USD/JPY 1-hour Forex Chart
USD/JPY 1-hour Forex Chart

USD/JPY is trading at the 107.50 area, which halfway through an established range on the 1-hour time frame and already half of the pair’s average daily ATR.

In addition to that, USD/JPY is also sporting a low key bullish divergence on the chart.

If Powell and his team successfully communicate their economic optimism and their willingness to extend their easy policies, then we could see USD/JPY bounce back up to the 108.00 range resistance.

However, if the Fed fails to convince traders that they can cap short-term Treasury bond yields, or if central bank members are more concerned about the economy’s trajection than markets are expecting, then USD/JPY could break below the 107.50 area and make its way to the 107.00 or even 106.80 previous areas of interest.