USD/JPY gains momentum ahead of Fed’s decision

The US dollar rose modestly across the board minutes before the FOMC decision. The Federal Reserve is expected to raise the target range of the Fed Funds by 25bp. 

USD/JPY climbed from 115.00 toward daily highs and it was trading around 115.30, up marginally for the day and 50 pips above daily lows. 

The Greenback gained momentum in the market but still remains trading sideways, in most crosses, inside yesterday’s trading range. The yen weakened in the market during the last hours as equity prices in the US erased losses. The Dow Jones was up 0.08%, at 19,923, headed toward yesterday’s intraday record and to the 20,000 mark, that could be easily reached if the FOMC decision triggers volatility across financial markets. 

In a few minutes, at 19:00 GMT, the FOMC will release a statement with the decision and also new macroeconomic projections, at 19:30 GMT, Janet Yellen will hold a press conference. 

USD/JPY levels 

To the upside, resistance levels might be seen at 115.50 (Dec 13 high), 116.10/15 (Dec 12 high) and 117.00 (psychological). On the opposite direction, support could be seen at 114.75 (daily low), 114.40 (Dec 7 high) and 113.10 (Dec 8 low).