• FxWirePro: USD/JPY flat-lined around 5-dma, awaits Federal Open Market Committee for further impetus

    Source: FxWire Pro - Technicals / 16 Dec 2018 23:26:18   America/New_York

    USD/JPY chart on Trading View used for analysis

    • USD/JPY trades slightly higher on the day at 113.48, up 0.09% at the the time of writing.
       
    • China's disappointing Nov IP and retail sales data have raised fears that global growth is coming under pressure.
       
    • Focus now on the Fed and BoJ monetary policy decisions this week for further impetus.
       
    • The Fed funds rate futures also continued to price the chance of a rate hike this week around 75% with a March 2019 rate hike given a 30% chance.
       
    • Analysts at Danske Bank expect that the Fed will probably remove more of its forward guidance to increase its flexibility.
       
    • There is likely to be an emphasis on a data dependent and risk management approach and we expect a muted reaction.
       
    • The Bank of Japan policy meet is scheduled for Thursday, 20th Dec and will likely be a non-event.
       
    • Technical indicators for the major are in neutral territory. Price action continues in a 'Symmetric Triangle' pattern. Breakout will provide better direction.
       
    • Immediate support is seen at 20-DMA at 113.25, while major resistance is seen at 113.85 (Major trendline).

    Support levels - 113.41 (5-DMA), 113.25 (20-DMA),113

    Resistance levels - 113.70 (Dec 13 high), 113.85 (major trendline), 114

    For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex
     

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