27 Apr 2016
USD/JPY attempting to move into positive territory
Extending its bounce from 111.00 mark, the USD/JPY momentarily turned positive and moved to fresh daily highs of 111.40 before retracing back to 111.25 level.
Following a big surge last week and subsequent retracement on Monday, the pair has been moving in a narrow trading range. The momentum, however, is unlikely to get extended as traders still remain resilient to hold any positional bets before the Fed monetary policy decision later during the day. The Fed is widely expected to leave interest rates unchanged but is expected to hint towards the possible rate-hikes during its upcoming meetings.
Technical levels to watch
From current levels, although the momentum above 111.30 might support further up-move, but seems unlikely to lift the pair beyond an immediate strong resistance near 111.90-112.00 round figure mark. However, a sustained break-out above 112.00 mark (of-course that seems to happen only post FOMC decision announcement) now seems to open room for continuation of the pair's recovery from its lowest level since Oct. 2014 touched earlier during April.
On the downside, weakness below 111.00 round figure mark immediate support is likely to find support around yesterday's low, near 110.65-60 region, which if breached could lead to a decline towards 110.30 support marking 38.2% Fibonacci retracement level of 107.84-111.86 up-swing. Further, a sustained weakness below 110.30 support is likely to accelerate the fall towards 50% Fibonacci retracement level support near 109.85-80 area.
Following a big surge last week and subsequent retracement on Monday, the pair has been moving in a narrow trading range. The momentum, however, is unlikely to get extended as traders still remain resilient to hold any positional bets before the Fed monetary policy decision later during the day. The Fed is widely expected to leave interest rates unchanged but is expected to hint towards the possible rate-hikes during its upcoming meetings.
Technical levels to watch
From current levels, although the momentum above 111.30 might support further up-move, but seems unlikely to lift the pair beyond an immediate strong resistance near 111.90-112.00 round figure mark. However, a sustained break-out above 112.00 mark (of-course that seems to happen only post FOMC decision announcement) now seems to open room for continuation of the pair's recovery from its lowest level since Oct. 2014 touched earlier during April.
On the downside, weakness below 111.00 round figure mark immediate support is likely to find support around yesterday's low, near 110.65-60 region, which if breached could lead to a decline towards 110.30 support marking 38.2% Fibonacci retracement level of 107.84-111.86 up-swing. Further, a sustained weakness below 110.30 support is likely to accelerate the fall towards 50% Fibonacci retracement level support near 109.85-80 area.