The USD/JPY pair consolidated on Wednesday

16 March, 2017

The USD/JPY pair consolidated on Wednesday as investors awaited the outcome of FOMC meeting. Traders expected 25 bp rate hike. Traders also looked forward to the BoJ meeting results and its decision regarding the rate. However, no one expected any surprise from this part.

Current situation

The overnight’s recovery attempt stalled just under the 115.00 barrier. Buyers’ inability to move higher returned control over the market to sellers. As a result the US dollar eased and erased all its recent gains in the European session. However, the overall picture remained unchanged. The USD/JPY pair was in a flat between 115.00 and 114.50. The spot continued developing above the moving averages in the 4 hours timeframe. The 50 and 100 EMAs pointed higher while the 200-EMA was neutral in the same timeframe. The resistance is highlighted at 115.00, the support comes in at 114.00.

MACD decreased which indicates the buyers’ positions weakening. RSI remained within neutral territory.

Trading recommendations

Markets eagerly awaited the Fed meeting results due later in the American morning. If the regulator changes the rates the US dollar will revive with its bullishness sending the market upwards.  A close above 115.00 will generate fresh bullish signal for further advance, which could extend to the 116.00 mark. On the other hand, unchanged rates will disappoint investors who may push the greenback to 113.00.


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