As inflation recently in the US has had a recent slight increase near 1.9% p.a., it is still below their target range. Despite this, Actual QoQ GDP Growth has increased to 3%, well ahead of forecast and consensus, and this has seen Forward Company Earnings improve in the US also.The Fed will be conscious of all of this, however, as they saw a small increase in Unemployment and Inflation still below their target levels, they are inclined to keep the rates flat for this month.
The USD/JPY is in a congestion phase (violet channel) waiting for the always important FED decision and FOMC conference. 112.60 looks attractive too sellers and a heavy momentum spike above 111.80 could get the price to 112.30-60 where it could start selling towards camarilla pivot points shown on the chart. A drop below 111.20 could target 110.90 and 110.60. The event is expected to be volatile so be prepared for price whipsaws in both direction.