USDJPY slipped as Fed meeting looms.
“Quiet Monday trading as the market embraces Fed policy meeting on Wednesday.”
Greenback edges lower on Monday as traders brace ahead for Federal Reserve policy meeting this coming Wednesday. Evidently, majority of market participants priced in for a 75-basis point rate hike with a small subset expecting a 100-basis point rate hike. Thus, major concern of the market will be the hawkishness of Fed and Chair Jerome Powell post-meeting.
Quick recap on USDJPY
Overall structure for the pair remains skewed towards the upside, with ample support from the trendline at the downside.
USDJPY Weekly Technical Analysis
From weekly perspective, the pair experienced eager selloff from the upside as it approaches psychological threshold of 140.00.
USDJPY Daily Technical Analysis
From daily perspective, MACD portrays bearish divergence signal, increasing the possibility for a short-term selloff up to the nearest support at 132.10.
Trading Idea
ORDER: BUY LIMIT
ENTRY: 133.00
STOP LOSS: 129.60
Target 1: 136.65
Target 2: 139.00
ZFX Analyst’s Comment
Overall, the pair is expected to concur upon its long-term structure due to divergence in between US and Japan’s policy. However, recent signal from the pair shows a kickback in the short-term before the continuation of bullish structure in mid-to-long-term.
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