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   “¢   Resurgent USD demand helps build on overnight goodish rebound.
   “¢   Subdued US bond yields/cautious mood kept a lid on additional gains.
   “¢   Investors seemed to await the FOMC decision for some fresh impetus.

The USD/JPY pair maintained its strong bid through the early North-American session and was now seen consolidating daily gains, just below three-week tops.  

The pair built on previous session’s goodish rebound from sub-113.00 level and climbed back closer to three-week tops, set in the previous session amid the ongoing US Dollar recovery from 2-1/2 week lows. Investors digested the US midterm election results, with a follow-through USD short-covering move turning out to be one of the key factors driving the pair higher.  

The pair jumped back above mid-113.00s, albeit a mildly cautious mood around equity markets, which tends to underpin the Japanese Yen’s safe-haven status, and a subdued action around the US Treasury bond yields kept a lid on any further up-move.

Moreover, investors now seemed reluctant to place any fresh bullish bets and preferred to place any aggressive bets ahead of the latest FOMC monetary policy update. The Fed is widely expected to maintain status-quo but indicate the intentions to raise interest rates for the fourth time this year in December.  

The monetary policy statement will not be accompanied by updated economic projection nor will be followed by the post-meeting press conference and hence, seems unlikely to prove as a major game-changer, though might still influence some volatility and produce some meaningful trading opportunities.

Technical levels to watch

Valeria Bednarik, FXStreet’s own American Chief Analyst writes, “the pair is mild bullish according to technical readings in the 4 hours chart, as it continues developing above directionless moving averages, and with the 100 SMA below the 200 SMA, while technical indicators stand well above their midlines, but with limited upward strength. The scale is leaned to the upside, with gains beyond 113.85 opening doors for an extension toward 114.54, October monthly high.”