USD/JPY Searches for a Top Ahead of FOMC

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USD/JPY Daily Chart

USD/JPY Price Chart - Daily Timeframe

Technical Outlook: USD/JPY has broadly hold within a proportions of this ascending pitchfork formation fluctuating off a yearly lows. Note that a together of a same slope (red) fluctuating off a Oct lows is now entrance into view. Key insurgency for a span stands with a operation highs / 61.8% retracement during 114.30/36 with support solid during 111.65 where a Oct low converges on a 100 200-day relocating averages. Broader bullish cancellation rests during 111.03.

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USD/JPY 120min Chart

USD/JPY Price Chart - 120min Timeframe

Notes: A closer demeanour during cost movement highlights a near-term descending channel arrangement fluctuating off a lows with a top together concentration on a 78.6% retracement during 113.90 into a tighten of US trade today. Interim support rests during 113.25 with a near-term bullish cancellation turn now lifted to 112.48.

A crack aloft targets a 114.30/50 range- a vicious threshold that if compromised would open adult an allege targeting a 61.8% retracement of a 2015 decrease during 115.52. Bottom line: streamer into a FOMC process assembly tomorrow, a near-term uptrend is during risk while next 114.50. Look for possibly signs of depletion there, or a mangle next 112.48 to change a concentration lower. A tighten above would keep a long-bias in play targeting successive insurgency objectives.

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USD/JPY IG Client Sentiment

  • A outline of IG Client Sentimentshows traders are net-long USDJPY- a ratio stands during +1.02 (50.5% of traders are long) – diseased bearishreading
  • Long positions are 9.9% aloft than yesterday and 4.3% reduce from final week
  • Short positions are 1.0% aloft than yesterday and 12.9% aloft from final week
  • We typically take a contrarian perspective to throng sentiment, and a fact traders are net-long suggests USDJPY prices might continue to fall. However, retail is some-more net-long than yesterday but reduction net-long from final week and a combination of stream positioning and new changes gives us a further churned USDJPY trade disposition from a view standpoint.

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Relevant Data Releases

USD/JPY Economic Calendar

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Other Setups in Play

– Written by Michael Boutros, Currency Strategist with DailyFX

Follow Michael on Twitter @MBForex or hit him during mboutros@dailyfx.com

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