USDJPY is expected to fall more as the Fed decision near

USDJPY accepts bids to extend the previous day’s decline from a two-month high.

USDJPY renews its intraday low near 136.00, extending the previous day’s U-turn from a multi-day high set earlier in the day on Wednesday. Nonetheless, the Yen pair maintains its earlier gains amid Japanese holiday celebrations. And a cautious mood ahead of the Federal Open Market Committee (FOMC) monetary policy meeting announcements.

As a result, the Yen pair extends Tuesday’s U-turn from March’s peak, depicting a two-month-old horizontal barrier near 137.80-90 and validating the bearish MACD signals. The sliding RSI (14) line, which is currently seesawing towards the 50.0 level, adds power to the downside bias, implying that the USDJPY price will continue to fall.

However, the resistance-turned-support line from late March, at the latest around 135.70, limits the market’s immediate downside.

Following that, multiple levels marked since March 10 and the 50-SMA highlight the 135.15-135.00 area as the key support for Yen pair sellers to break before taking control. Nonetheless, a one-month-old ascending support line near 133.80 can serve as the USDJPY buyers’ last line of defense.

Meanwhile, the USDJPY pair’s recovery moves must stabilize above the 137.00 immediate hurdle in order to entice intraday buyers. Tops in March and May, around 137.80-90, followed by the 138.00 round figure, could pose a challenge to the Yen pair bulls.

 Daily Trends