USD/JPY below key resistance ahead of FOMC

By FXStreet FXStreet (Guatemala) – USD/JPY was unable to close above the key 120.80 level at the end of last week’s session by the NY close and leaves the major vulnerable to the downside while the key fundamental events that will occur this week are the FOMC and BoJ.

USD/JPY ahead of FOMC

USD/JPY made a strong recovery from the depths of the 119 handle as last week got going with a rally up to test the resilience of the bears at the 120 handle which eventually broke down and gave way to highs achieved last in the week at 121.31. Late Asian and European markets on Friday took profits and turned back in favour of the Yen as we drew closer to the weekend and risk aversion was the theme again.

We have the BoJ first up this week, who will release their rate decision, expected to remain on hold, the minutes and a press conference where markets will be looking out for any possibility that the Central will add to their QQE before the year is out. The FOMC will be the showdown with the possibility of the first rate hike in a decade that could propel the greenback forward and …read more

Source:: FX Street