This week's focus is on the central bank monetary policy statement from the U.S. Federal Reserve and the Bank of Japan. The BoJ begins its meeting on Monday with its statement on Monetary Policy due early Tuesday. There is increasing speculation that the BoJ may alter its yield curve control settings because of lower bank profitability and almost zero inflation levels in Japan.
The USDJPY has been hovering at the lower end of the uptrend channel around the 111 level prior to the BoJ decision tomorrow. A close below this level would signal a bearish move towards the support at 110.20. The RSI looks mixed signaling more consolidation until any fundamental news from the BoJ meeting that might initiate some volatility.
Support: 110.20 109.40
Resistance: 112.65 113.50