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  • The USD/JPY pair extended its steady intraday pullback from near three-week tops and dropped to fresh session lows, around mid-108.00s in the last hour.
  • The mentioned region coincides with 100-hour SMA, which should now act as a key pivotal point for traders ahead of the highly anticipated FOMC meeting.

Meanwhile, technical indicators on the 1-hourly chart have been gaining negative momentum but maintained their bullish bias on 4-hourly/daily charts, warranting some caution before positioning for any further near-term corrective slide.  

Hence, any meaningful weakness below the mentioned support seems more likely to attract some decent dip-buying interest near the 108.20 horizontal support and should help limit the downside near the 108.00 round figure mark.

On the flip side, the 108.95-109.00 zone remains an immediate strong resistance, which if cleared decisively will set the stage for a move beyond the 109.25 intermediate hurdle towards testing 100-day SMA near the 109.70 region.

A follow-through buying, leading to a subsequent move beyond the key 110.00 psychological mark might negate any near-term bearish bias and pave the way for a further near-term appreciating move towards reclaiming the 111.00 handle.

USD/JPY 1-hourly chart