The Dollar/Yen boosted to the upside despite equities were sent down from daily highs after reemerging US-China trade tensions, indicating that some US officials expressed concern that China is pushing back against the US demands in trade talks. Heading into today’s key event risk; the latest FOMC monetary policy update, the FED is widely expected to keep interest rate unchanged, accompanied by updated economic projections. Traders will be hoping to see a strong follow-through momentum to either direction to confirm the pair’s near-term trajectory.
The USD/JPY broke above 111.50 previous resistance, where it is currently being retested as a new support. The bulls will try to retest the 112 (R1) for a potential breakout, as long as they can protect the 111.50 (S1) level. If, however that support level is lost, we could see further weakness towards 111.30-40 (50 and 200-day moving averages) and possibly 111.10 (S2).
Support: 111.50 / 111.1
Resistance: 112 / 112.30