The US dollar has fallen a bit during the trading session on Tuesday, reaching towards the gap below near the ¥180 level, an area that has seen buyers previously. With the FOMC Statement coming out tomorrow, it’s very unlikely that we see massive moves, and quite frankly I would expect a gentle drift higher from this point, as the market will probably continue to see the lot of concern about the statement and what it could lead to. With that in mind, I suspect that this is going to be a simple continuation over the same 100 pips or so that we have been fighting over.
USD/JPY Video 19.06.19
Looking at the charts, I recognize the ¥180 level as a crucial area as the 61.8% Fibonacci retracement level is just below there. That being the case, if we can break above the ¥108.75 level, then I think we can break towards the ¥109.60 level. Above there, the ¥109.70 level is massive resistance and if we can break there, then I think the market could really start to take off to the upside. On the other side, if we break down below the 61.8% Fibonacci retracement level, the market probably then goes down to the ¥105 level. All things being equal, I think this is simply a back-and-forth grind and consolidation as we wait to see what the Federal Reserve is going to do, and of course how the stock market reacts. I would be on the sidelines for the next 24 hours.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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