- USD / JPY rose during the New York session, up 0.15%.
- A risk-off market mood looms as the Federal Reserve’s monetary policy meeting looms.
- USD / JPY Technical Outlook: The pair has an upward bias, albeit limited around the 113.21-113.95 range.
USD / JPY barely advanced during the New York session, trading above 113.75 at time of writing. Sentiment in financial markets is pessimistic as investors appear to be waiting for the Federal Reserve’s monetary policy decision, which will be released on Wednesday.
USD / JPY Price Forecast: Technical Outlook
USD / JPY has been limited within the 113.21-113.95 area for the past six days. Furthermore, the pair has been looking to either side of the 50-day moving average (DMA), showing that market participants do not have a clear bias as the end of the year approaches. However, the Japanese yen appears vulnerable as the greenback, supported by recent optimistic rhetoric led by President Jerome Powell, diverges from the current Bank of Japan monetary policy.
That said, USD / JPY is biased to the upside, although it would have to break above 113.95 to consolidate a move towards 2021 highs around 115.52.
In case of breaking to the upside, the first resistance would be 114.00, followed by the October 20 high at 114.70. A break of this last level would expose 115.00.
On the other hand, any downward movement would be limited by the 113.00 figure. A break below that level would expose the November 30 pivot low at 112.53, and then the 100 DMA at 111.87.
Technical Levels
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