30 Oct 2013
USD/JPY glued at 98.20, what's to expect ahead FOMC?
FXstreet.com (San Francisco) - Barely unchanged, the USD/JPY holds in a tight range in between 98.15 and 98.30 just ahead of the FOMC monetary policy decision.
On one is expecting a big change in the Fed policy. As ForexLive's analyst Ryan Littlestone comments: "The Fed has nothing to give it cause to taper and nothing to give it cause to increase QE. They've been given a free ride this month with the shutdown and that also buys them some waiting time going into November while the data catches up." In this scenario, Littlestone expects "the buck goes back south towards the 97.00 level."
In the same line and despite that the "tight consolidation in USD/JPY points to a potential breakout," BK's analysts Kathy Lien comments. "The FOMC rate decision may not do the trick."
The Boris Schlossberg and Kathy Lien due see that the Dollar reaction to the Fed's outlook "could be limited to 1% against all pairs." In the USD/JPY case, it should mean that "96-99.50 range should remain intact."
USD/JPY technicals
Currently, the USD/JPY is trading at 98.20, almost flat on the day. The short term perspective is slightly bearish according to the FXstreet.com trend index in the 1-hour chart. Indicators such as CCI and Momentum are pointing to the south while the Stochastic and the MACD are neutrals.
USD/JPY could find immediate resistances at 98.30 (daily high), 98.37 (100-day SMA) and 98.47 (Oct 22 high). Meanwhile, next supports are seen at 98.07 (daily low) and 97.75 (21-day SMA).
On one is expecting a big change in the Fed policy. As ForexLive's analyst Ryan Littlestone comments: "The Fed has nothing to give it cause to taper and nothing to give it cause to increase QE. They've been given a free ride this month with the shutdown and that also buys them some waiting time going into November while the data catches up." In this scenario, Littlestone expects "the buck goes back south towards the 97.00 level."
In the same line and despite that the "tight consolidation in USD/JPY points to a potential breakout," BK's analysts Kathy Lien comments. "The FOMC rate decision may not do the trick."
The Boris Schlossberg and Kathy Lien due see that the Dollar reaction to the Fed's outlook "could be limited to 1% against all pairs." In the USD/JPY case, it should mean that "96-99.50 range should remain intact."
USD/JPY technicals
Currently, the USD/JPY is trading at 98.20, almost flat on the day. The short term perspective is slightly bearish according to the FXstreet.com trend index in the 1-hour chart. Indicators such as CCI and Momentum are pointing to the south while the Stochastic and the MACD are neutrals.
USD/JPY could find immediate resistances at 98.30 (daily high), 98.37 (100-day SMA) and 98.47 (Oct 22 high). Meanwhile, next supports are seen at 98.07 (daily low) and 97.75 (21-day SMA).