USD/JPY Vulnerable Heading into FOMC- Key Support 103.45

Talking Points

  • USD/JPY exposed streamer into FOMC rate decision
  • Immediate concentration is reduce underling 104.86
  • Updated targets cancellation levels

USD/JPY 120min

USD/JPY 240min Chart

Chart Created Using TradingView

Technical Outlook: The USDJPY convene unsuccessful only forward of a May lows at 105.55 last week with a span entrance underneath vigour currently in U.S. trade. Heading into tomorrow’s FOMC seductiveness rate decision, a near-term risk stays slanted to a downside while next connection insurgency during 104.86.

A newly identified pitchfork off a highs highlights near-term support during 104.16 corroborated by a some-more poignant connection during 103.45. A mangle next 102.81 would be indispensable to change a broader concentration behind to a short-side of a span (bullish cancellation area of seductiveness for near-term depletion / long-entries). From a trade standpoint, I’m looking to blur strength into constructional support where a USDJPY might demeanour to mountain a some-more poignant counter-offensive. Keep in mind a executive bank is widely approaching to mount pat on financial process this month with Fed Fund Futures still pricing in a scarcely 72% possibility for an seductiveness rate travel in December.

USD/JPY SSI

  • A outline of a DailyFX Speculative Sentiment Index (SSI) shows traders are net long USDJPY– a ratio stands during +1.41 (58% of traders are long)- bearish reading
  • Long positions are 1.7% above levels seen final week while brief positions are 8.4% reduce over a same time period.
  • Open seductiveness is 5.0% reduce than yesterday and 1.1% next a monthly average.
  • The stream energetic suggests that a near-term risk remains weighted to a downside and we’ll be looking for a build in short-exposure as a span heads into support to advise that a downside vigour is fading.

Help fine-tune we entries, click here to learn some-more about a DailyFX Grid Sight Index (GSI)

Relevant Data Releases This Week

USD/JPY Economid Calendar

Other Setups in Play:

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  • Webinar: Key Trade Setups For November- Central Banks, NFP on Tap
  • NZD/USD during Risk for Further Losses Heading into U.S. 3Q GDP
  • Oil Price Sell-off to Gain Traction on a Break Below 48.80

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—Written by Michael Boutros, Currency Strategist with DailyFX

Follow Michaelon Twitter @MBForex hit him during mboutros@dailyfx.com or Click Here to be combined to his email placement list

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