In the run-up to the FOMC meeting and Jerome Powell's press conference, activity on the forex market is quite low, as investors do not rush to open new trades. USD/JPY remains in a narrow price range, trading just below the 144.00 level.
The Fed is expected to announce a rate hike of 75 basis points, although some experts relying on inflation report data believe that the regulator needs to raise the rate by 1.00% at once.
The Bank of Japan will hold a meeting on Thursday. The Japanese central bank unlike the Fed does not plan to toughen the monetary policy. Inflation in Japan, though growing, but remains within the target range. At the same time the monetary authorities have repeatedly voiced concerns over the low rate of the national currency.
USD/JPY Technical analysis
The CCI and the Bollinger Bands on the daily chart are still rising.
The MACD indicator remains in the positive area, but it is declining towards the zero line and has generated a sell signal.
The stochastic decline was interrupted and the oscillator moved to the growth.
If the pair consolidates above the level of 144.00, then we return to the long position towards 146.00. We will place a stop loss at 143.00.
In case of a rebound from 144.00 we wait for consolidation below support at 142.54 and only after that we start selling with a target point at 140.78. Placement of a stop-loss at 143.50
If you are interested in USDJPY analytics, we recommend you to visit the analytics page, where you can find the latest analytics on Forex from top traders from all over the world. These analytics will be useful both for beginners and professional traders. The Forex signals service makes it much easier for beginners to make their first steps in trading on the financial markets. The latest USD/JPY forecasts and signals contain support and resistance levels, as well as stop-loss levels.