USD/JPY: Risk on rules over dovish FOMC consensus, 111.90 in spotlight

• Traders welcomed no-deal Brexit ahead of a busy week including FOMC.
• 111.15 and 111.90 is likely an immediate range for the quote.

USD/JPY is on bid around 111.55 during early Monday. The pair gave little importance to speculations concerning the Fed’s dovish appearance this week over the risk on sentiment that weakened safe havens like the Japanese Yen (JPY). Current month NAHB housing market index from the US and developments surrounding risk events could direct immediate moves.

Buyers were initially praised over the absence of no-deal Brexit scenario and ignored upbeat print of the February month Japanese export growth, namely -1.2% against -6.7% imports.  

The upside strength got increased support on the BBC report that the UK’s Finance Minister Philip Hammond said that a significant number of the British members of parliament (MPs) support PM May’s plan that’ll be up for voting on Tuesday.

Investors turned optimistic despite a Bloomberg report showing traders weigh higher chances of a dovish FOMC (federal open market committee) appearance during Wednesday’s monetary policy meeting by the US Federal Reserve.

Risk sentiment still remains on card as some of the British MPs ask for PM May’s resignation in April in exchange of their support to her Brexit proposal while the British Chambers of Commerce (BCC) and the New Zealand Institute of Economic Research (NZIER) lowered their GDP forecasts for the UK and New Zealand economies respectively.

Additionally, the US housing market gauge is likely to remain around 63 versus 62 prior whereas the US-China trade deal is also witnessing fewer chances of a successful before June.

USD/JPY Technical Analysis

Sustained trading above eleven-week long ascending support-line portrays the USD/JPY pair’s strength to confront multiple resistances around 111.90, which if broken opens the gate for an additional rise to 112.15 and 112.30.

Meanwhile, 200-day simple moving average (SMA) figure of 111.40 acts as immediate support for the pair before highlighting the said trend-line, at 111.15 now.