USD/JPY fights while the Fed policy decision and commercial conversations between the US and China are coming

• The USD/JPY is quoted in a narrow range before the May of the Fed’s policy decision, reflecting the caution of investors.
• Market participants prepare for signals on future feat cuts in mixed economic data in the US.
• The technical levels show a challenging path for the bullies, with resistance about 144.00 and support around 142.20.

The USD/JPY torque is negotiating in an adjusted range while the markets expect the US Federal Reserve Decision (FED) on Wednesday. Investors hope that the Central Bank maintains its policy rate without changes in the range of 4.25% -4.50% per third consecutive meeting, despite the growing economic uncertainties. Meanwhile, optimism about commercial conversations between the US and China in Switzerland has provided some support to the US dollar (USD), limiting the attractiveness of a safe refuge of the Japanese Yen (JPY).

Before the FED meeting, the US dollar index (DXY) has stabilized about 99.40 after three consecutive days of losses. This reflects a cautious tone while investors weigh mixed economic signals. The CME Fedwatch tool indicates that operators see virtually null the possibility of a rate cut in May, but assign a 30% probability to a 25 basic points cut in June. This uncertainty has kept USD in a consolidation phase, particularly against JPY, which has weakened in the middle of a lower demand for shelter assets.

In addition, US policies responsible have expressed concerns about possible economic slowdown. The president of the Fed of Minneapolis, Neel Kashkari, recently stressed that some companies are preparing for possible dismissals if uncertainty persists. This cautious tone was repeated by the governor of the Fed, Christopher Waller, who suggested that the increase in unemployment could pave the way for future feat cuts. Despite the strongest non -agricultural payrolls than expected for April, which showed 177,000 jobs added compared to the 130,000 expected, the markets remain reluctant to completely discount a rate cut in June.

Technical analysis

From a technical point of view, the USD/JPY faces significant resistance around 144.00, with more barriers in 144.68 and 146.70. In the lower part, the support is observed about 142.20, with critical levels in 140.00 and 139.50 if the bass momentum intensifies. The RSI is neutral around 46.25, indicating a lack of strong directional bias, while the MACD is generating a purchase signal, suggesting a possible short -term recovery. However, longer -term mobile socks such as the 100 -day SMA (150.63) and the 200 -day SMA (149.62) maintain a bassist perspective, reflecting a general downward trend.

In summary, it is likely that the USD/JPY remains in a consolidation phase while the operators expect clarity of the FED policy declaration and the press conference after the meeting. Any Dovish signal of the Fed president, Jerome Powell, could press the torque towards lower support levels, while a more Hawkish tone could provide the USD with a temporary impulse.

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