On Wednesday, USD/JPY buyers turned active and the pair broke through the resistance at 148.00.
Despite the low market volatility, caused by expectations of the results of the Fed meeting, the "bulls" managed to update the local maximum and are not going to give up their positions.
Investors believe that at today's meeting the Fed will keep the rate at the same level of 5.5%, but will make it clear that with a new round of inflation caused by rising oil prices, the regulator will continue to tighten monetary policy and in November may raise the rate by 25 basis points to 5.75%.
Japan's macroeconomic statistics, published on Tuesday, failed to have a significant impact on the yen dynamics. In August, exports decreased by 0.8% and imports by 17.8%. Japan's trade deficit for the month rose from ¥66.3 billion to ¥930.5 billion.
On Friday, the Bank of Japan will hold a meeting. It is possible that the regulator will change the current course of monetary policy, especially as USD/JPY is confidently approaching 150.00, and inflation has not yet approached the 2% target.
USD/JPY Technical Analysis
On the chart of the day, the Bollinger Band Indicator remains in an upward direction. At the same time, the MACD Indicator is declining in a positive range and has formed a weak sell signal, which may be canceled soon. The Stochastic oscillator is flat in the overbought range.
In case of price consolidation above the key resistance at 148.00, we open long positions with the expectation of reaching the target at 149.00. Stop-loss is set at 147.36.
It makes sense to consider selling only if the pair falls below 147.36. In this case, the nearest target of the "bears" is at 146.00. Stop-loss of the deal is placed at 148.00.