USDJPY maintained a solid tone and traded inside a tight range
On Monday, the USDJPY maintained a solid tone and traded inside a tight range slightly below fresh multi-month highs (147.87/95).
Today’s quiet mode is mostly due to reduced volumes since Japan is closed for holidays. While traders have been more cautious ahead of two significant events this week – policy meeting. At the US Federal Reserve and the Bank of Japan.
The Fed will conclude its two-day meeting on Thursday. And the BOJ will meet on Friday, with both central banks widely expected to remain on hold this time. Though surprises cannot be ruled out, especially after recent comments from the BOJ governor. Who mentioned the possibility of tightening monetary policy beginning sooner than expected.
Markets are expected to suffer heightened volatility. Volatility is expected this week, with a focus on FOMC statements in light of recent positive economic data, which has relieved some pressure on the Fed and BOJ’s instructions on the conditions necessary to begin reversing current negative policy.
USDJPY Technical Outlook
USDJPY four consecutive weekly finishes above former key resistance, now reverted to strong support at 146.10 (Fibo 76.4% of 151.94/127.22), as well as strong bullish momentum, bolster the technical structure.
The near-term bias is projected to continue bullish. As long as the action remains above 146.10, keeping expectations alive for a last push. Towards the psychological 150 level (last tested in mid-October 2022).
Caution on a breach below 146.10. Which might lead to a deeper retreat.
Res: 148.00; 148.59; 148.84; 149.70.
Sup: 147.16; 146.10; 145.06; 144.44.
