USDJPY Facing Hurdle Around 121.50 Ahead of Fed Meeting
Aayush Jindal
Key Highlights
US dollar continued to trade in the positive territory, but struggling to clear an important resistance at 121.50.
Fed interest rate decision is a major release lined up today, which is likely to ignite moves in the US dollar.
USDJPY has a support around 121.10 and resistance ahead at 121.50.
Technical AnalysisThe USDJPY pair continuously finding buyers around the 121.00 level and struggled to move lower. Recently, the pair tested the 50% fib retracement level of the last leg from the 120.62 low to 121.56 high. Moreover, the 200 hour moving average is also positioned on the downside and acting as a barrier for the US dollar sellers.There is a bearish trend line formed on the hourly chart, which is protecting upsides in the pair. The pair struggled many times around the highlighted trend line and moved back lower. We need to see whether the pair can break higher or not. A break above the stated trend line might ignite more gains in the near term. In that situation, the pair might spike towards the last swing high around 122.00.Currently, the pair is flirting with the 100 hour MA. A successful close above the same might encourage the US dollar buyers moving ahead.Japanese Merchandise Trade BalanceToday, during the Asian session, the Japanese Merchandise Trade Balance Total was released by the Ministry of Finance. The outcome was not that good, as it registered a deficit of ¥-424.6B in February 2015, compared to the forecast of ¥-1,050.0B. Moreover, the Japanese Adjusted Merchandise Trade Balance presenting a seasonal measure of balance amount between import and export came also fell and registered a deficit of ¥-638.800B in February 2015, compared to the last deficit of ¥-406.124B. Speaking of the Japanese imports it posted a decline of 3.6% and exports gained by 2.4% in February 2015.The Japanese yen showed no reaction after the release. The USDJPY pair was seen trading in a range of 20 pips.Fed Interest Rate DecisionToday, in the US the fed interest rate decision will be announced, which holds the key for the US dollar in the short term. We need to see how it reacts and whether it surges higher or corrects lower moving ahead.
Currently, the pair is flirting with the 100 hour MA. A successful close above the same might encourage the US dollar buyers moving ahead.Japanese Merchandise Trade BalanceToday, during the Asian session, the Japanese Merchandise Trade Balance Total was released by the Ministry of Finance. The outcome was not that good, as it registered a deficit of ¥-424.6B in February 2015, compared to the forecast of ¥-1,050.0B. Moreover, the Japanese Adjusted Merchandise Trade Balance presenting a seasonal measure of balance amount between import and export came also fell and registered a deficit of ¥-638.800B in February 2015, compared to the last deficit of ¥-406.124B. Speaking of the Japanese imports it posted a decline of 3.6% and exports gained by 2.4% in February 2015.The Japanese yen showed no reaction after the release. The USDJPY pair was seen trading in a range of 20 pips.Fed Interest Rate DecisionToday, in the US the fed interest rate decision will be announced, which holds the key for the US dollar in the short term. We need to see how it reacts and whether it surges higher or corrects lower moving ahead.
Currently, the pair is flirting with the 100 hour MA. A successful close above the same might encourage the US dollar buyers moving ahead.Japanese Merchandise Trade BalanceToday, during the Asian session, the Japanese Merchandise Trade Balance Total was released by the Ministry of Finance. The outcome was not that good, as it registered a deficit of ¥-424.6B in February 2015, compared to the forecast of ¥-1,050.0B. Moreover, the Japanese Adjusted Merchandise Trade Balance presenting a seasonal measure of balance amount between import and export came also fell and registered a deficit of ¥-638.800B in February 2015, compared to the last deficit of ¥-406.124B. Speaking of the Japanese imports it posted a decline of 3.6% and exports gained by 2.4% in February 2015.The Japanese yen showed no reaction after the release. The USDJPY pair was seen trading in a range of 20 pips.Fed Interest Rate DecisionToday, in the US the fed interest rate decision will be announced, which holds the key for the US dollar in the short term. We need to see how it reacts and whether it surges higher or corrects lower moving ahead.