- USD/JPY witnesses a modest intraday pullback from weekly tops.
- The downside remains cushioned near 109.00 ahead of the FOMC.
The USD/JPY pair failed to capitalize on its early uptick to weekly tops and witnessed a modest intraday pullback from a resistance marked by 100-hour SMA.
Bulls, however, managed to defend the 109.00 round-figure mark, which coincides with 50-hour SMA and should now act as a key pivotal point for intraday traders.
Meanwhile, technical indicators on the 1-hourly chart have again started gaining some positive traction but maintained their bearish bias on 4-hourly/daily charts.
The technical set-up hasn’t been supportive of any firm intraday direction and warrants some caution for aggressive traders ahead of the FOMC policy decision.
Hence, it will be prudent to wait for a sustained break through the daily trading range before positioning for any meaningful intraday trading opportunities.
Immediate resistance is pegged near the 109.60 region (200-hour SMA), which if cleared should set the stage for a move towards the key 110.00 psychological mark.
Conversely, a sustained break below the 109.00 level seems to accelerate the slide towards multi-week lows, around the 108.75-70 region, en-route mid-108.00s.
The latter coincides with the very important 200-day SMA, which if broken might be seen as a key trigger for bearish traders and pave the way for a further decline.
USD/JPY 1-hourly chart