USD/JPY Bullish Sentiment Ahead of Fed Rate Decision

USD/JPY Bullish Sentiment Ahead of Fed Rate Decision

9:00 AM (EST) Update

USD/JPY Daily: After consolidating for a few days, the pair shows bullish sentiment above  Ichimoku Cloud’s .

Technical Analysis

 After ranging inside an extended triangle for over 5 months, the dollar-Yen pair finally broke above a very important psychological level and reached an 8 year high of 123,above the Ichimoku cloud and reached our first bullish target of 125.48, followed by an expected pullback. Now the pair is back on rallying with the RSI heading up towards the neutrality area.

Economic Points

FOMC Economic Projections, press conference and rate decision coming up Wednesday afternoon.

BoJ’s Rate Decision on Friday.

Forex Trading Idea

Bullish targeting 125.

Alternative scenario: Below 116 look for a trend change.

Where to set your stops and limits:

Support Levels Turning Point Resistance Levels
115 121.50 125
112 116 126