It could be an interesting week indeed for USDJPY. With both the Fed and rate decisions due there is likely to be plenty of volatility. The Fed is expected to cut while the BOJ has signaled in recent days that it might refrain from easing at this point. However, such guidance could be a tactic to allow room for the bank to surprise the market, creating more impact from easing. Plenty to watch this week.
Technical Perspective
USD/JPY has fallen back under the 108.72 level which means that there is the risk of a move back down to the bottom of the range at 108.50. However, ahead of that level, we have support coming in from the rising trend line from October lows. While this trend line remains intact, focus is on a further move higher an eventual push beyond the 108.72 level.
