The USD/JPY price edges higher as the Dollar finds traction ahead of Fed. The pair has found strong support, and now it looks to trade higher. It’s located at 110.18 level far above 109.62 yesterday’s low.
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The pair has printed a potential Inverse Head & Shoulders reversal pattern. Still, the chart formation is far from confirmation. The buyers are also firm because the Nikkei (JP225) has rebound after its last drop.
Today, the fundamentals will move the markets. The FOMC Meeting is seen as a significant and high-impact event. The Federal Reserve is expected to maintain the Federal Funds Rate unchanged at 0.25%.
The FOMC press conference could be really decisive. Any hint coming from the FED that they will hike rates could boost the USD and force USD/JPY to increase. On the other hand, dovish guidance could weigh on the Greenback.
USD/JPY price technical analysis: Lookout for a bullish breakout
The USD/JPY price has found support again on the 50% retracement level and now is pressuring the 38.2%retracement level. In addition, it has printed a potential Inverse H&S pattern after failing to reach the ascending pitchfork’s lower median line (LML).
Still, the reversal pattern could be activated after the price makes a valid breakout above the neckline and after jumping above the 23.6% level. However, the USD/JPY pair is traded way below these upside obstacles, so maybe you should stay away from this pair right now. We don’t have a good trading opportunity at the moment.
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Closing and consolidating above the 38.2% (110.14) level could bring us a long opportunity sooner. In addition, the pair moves somehow sideways on the H4 chart, so a larger growth could be validated by a new higher high.
Technically, the USD/JPY price has managed to jump above the downtrend line, signaling a potential upwards movement. However, the USD/JPY price could still increase as long as it stays within the ascending pitchfork’s body.
A downside breakout through the lower median line (LML) invalidates the bullish scenario and could bring us a short opportunity.
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