​Chart Of The Day: 3-week-old support-line favors USDJPY rise beyond 100-DMA on FOMC-day

Wed, 18 Sep 2019 13:34

USDJPYDaily_18092019.png

Other than the sustained break of 100-DMA, successful trading above near-term rising trend-line also portrays the USDJPY pair's strength on the FOMC day. The Fed is most likely to announce 0.25% rate cut while holding a cautiously bearish bias towards future rate alterations, which market expects one to three additional such down moves in the current year. In doing so, the US central bank increases the odds for the pair's further advances to 50% Fibonacci retracement level of 108.40 and 109.00. However, a confluence around 109.30/40 including 61.8% Fibonacci retracement and 200-DMA could question further upside.

On the downside, 100-DMA level of 108.00 and the trend-line support of 107.65 can keep near-term pullbacks confined, which if failed could quickly drag the quote to 107.00 and 23.6% Fibonacci retracement level of 106.30.

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