USD/JPY sits in consolidation mode going into today’s much-anticipated Fed Meeting.
A USD/JPY push below 108.13 support to 108.04 on Tuesday and despite a rebound activity remains capped by our resistance area at 108.72/80 and the downtrend line from April.
This sustains the negative bias from the late May/ early June plunge through notable support at 108.47 (from January 2019), keeping the bias lower into Wednesday.
The May surrender of 109.66 set an intermediate-term bear trend
- We see a downside bias for 108.04 and 107.79/74; break here aims for 107.10.
- But above 108.72/80 opens risk up towards 109.59.
Intermediate-term Outlook – Downside Risks: We see a downside risk for 107.74, 106.72/55 and 105.00/104.78
- What Changes This? Above the resistance gap at 109.92 shifts, the outlook back to neutral; above 110.67 is needed for a bull theme.
4 Hour USDJPY Chart