USD/JPY Finds Support Ahead of FOMC, but Bears Still Loom

By XM Group (Trading Point )CurrenciesMar 22, 2023 07:14AM ET

www.investing.com/analysis/usdjpy-finds-support-ahead-of-fomc-but-bears-still-loom-200636499

USD/JPY Finds Support Ahead of FOMC, but Bears Still Loom

By XM Group (Trading Point ) | Mar 22, 2023 07:14AM ET

Saved. See Saved Items.

This article has already been saved in your Saved Items

USD/JPY

-0.24%

Add to/Remove from Watchlist

USDJPY_22_03_daily

USDJPY turned green ahead of Wednesday’s FOMC policy announcement, pivoting on the tentative support trendline that joins the lows from January and February on Tuesday. Discouragingly though, the pair could not close above Monday’s high of 132.64, unable to form a bullish engulfing candlestick pattern.

The flattening 50-day simple moving average (SMA) is blocking bullish actions around the same area for the third consecutive day, while not far above, the 23.6% Fibonacci retracement of the 151.93-127.21 downleg at 133.00 might keep traders cautious as well. The extension of October’s descending line is adding extra importance to that zone.

Therefore, a break above 133.00 might be a prerequisite for an advance to the 20-day SMA at 134.50. If that proves easy to pierce through, the pair could stage a quick rally towards the crucial 136.65-137.52 territory formed by the 38.2% Fibonacci level and the 200-day SMA. The 138.00 psychological level will come under consideration too, as any step higher would put the 2023 uptrend back into play.

The momentum indicators, however, have not entered the bullish area yet, dampening hopes for a meaningful rebound in the short term. Specifically, the RSI has not crossed above its 50 neutral mark despite reversing higher. Likewise, the MACD remains comfortably below its red signal and zero lines, while the Stochastic oscillator is maintaining a neutral trajectory around its 20 oversold level.

If the 50-day SMA stands firm at 132.55, the price may drift lower to seek support around the ascending trendline at 130.55. Should the bears breach that floor this time, they may initially test the 129.20- 128.10 constraining zone before heading for the 126.35 low taken from May 2022.

In summary, Tuesday’s rebound in USDJPY has not improved market sentiment. The pair will need to overcome the 133.00 level and then violate March’s bearish wave above 134.50 in order to boost buying appetite. Yet only a surge above 138.00 would change the short-term outlook back to bullish.

USD/CAD Tumbles After Bank of Canada’s Surprise Rate Hike By Matthew Weller - Jun 08, 2023 1

Contrary to the majority of economists’ forecasts, the BOC opted to raise interest rates The central bank cited sticky inflation in support of its decision USD/CAD is testing...

EUR/USD Likely to Close at Moving Average Soon By Al Brooks - Jun 07, 2023 4

The EUR/USD found buyers early this morning. The market will probably rally closer to the moving average (blue line) over the next few days. The tight bear channel that began in...

GBP/NZD Headed Up Fast By Scott Barkley - Jun 07, 2023

Note: BOC Rate Statement TodayBullish: GBP/NZD is currently at 2.0529 in the channel. If we can break resistance here, we are looking for a continuation to the 1.618 Fibo/ATR...

Add a Comment

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:

Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
Only English comments will be allowed.
Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

I have read Investing.com's comments guidelines and agree to the terms described.

I Agree

Write your thoughts here

Are you sure you want to delete this chart?

Delete Cancel

Post

Post also to:

Replace the attached chart with a new chart ?

Replace Cancel

1000

Comment Guidelines

Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.

Please wait a minute before you try to comment again.

Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.

<div id="comment">
				<div class="comment js-comment" data-comment-id="{commentID}" id="comment-{commentID}" data-user-id="">
    <div class="mainComment js-content">
       <div class="commentInnerWrapper">
        <a href="{userLink}" class="js-user-link"><img src="{userImage}" width="33" height="33" alt="{usernameAlt}" class="img" onerror="this.src='https://i-invdn-com.investing.com/defaultUserMaleTmp.png';"></a><div class="commentBody">
                					<span class="commentUsername">
                    	<a href="{userLink}" class="js-user-link js-user-name">{username}</a>
					</span>
                                <span class="js-date" comment-date="{dateFormat}" comment-date-formatted="{dateFormatted}" title="{dateTitle}">Just Now</span>
                <div class="commentDropDown js-commentDropDownWrapper " data-user-id="" data-cid="{commentID}">
	<a href="javascript:void(0);" class="threeDotsIconSmall js-thinDropdownArrow"></a>
	<div class="tooltipPopup commentActionsPop noHeader js-commentDropDownOptions displayNone">
		<div class="addRow js-option share">
			<a href="javascript:void(0);" class="js-commentSharePopup" data-cid="{commentID}" data-curl="{commentLink}"><span class="smallShareIcon middle"></span>Share</a>
		</div>

<div class="js-option addRow follow">
            <div class="js-follow-post-button" data-reg_ep="follow comment">
                <span class="alertfollowIcon middle"></span>Follow this post            </div>
            <div class="js-unfollow-post-button displayNoneImp">
                <span class="alertUnfollowIcon middle"></span>Unfollow this post            </div>
        </div>

<div class="addRow js-option save"  data-reg_ep="save comment">
		<a href="javascript:void(0);" class="js-save-item-btn" data-item-type="comments" data-item-id="{commentID}">
			<i class="saveItemBigIcon middle"></i>
			Save		</a>
	</div>
	<div class="addRow saveItemsConfirmation noHover displayNone js-saveItemResult">
		
<div class="content js-saveItemSuccess displayNone">
	<span class="mediumGreenSuccessIcon"></span><span>Saved. See <a href="/members-admin/saved-items" target="_blank">Saved Items</a>.</span>
	<a href="javascript:void(0);" class="bugCloseIcon js-close"></a>
</div>
<div class="content js-saveItemAlreadySaved saveItemAlreadySaved displayNoneImp">
	<span>This comment has already been saved in your <a href="/members-admin/saved-items" target="_blank">Saved Items</a></span>
	<a href="javascript:void(0);" class="bugCloseIcon js-close"></a>
</div>
	</div>

<div class="addRow shareButtons js-sharePopup displayNone">
			<div class="js-shareComment"><span class="js-shareCommentSpan"></span></div>
		</div>
	</div>
</div>
                 <div class="commentAuthor js-comment-by-author"><span class="commentAuthorIcon"></span>Author's response</div>             </div>
		<div id="commentText-{commentID}" class="js-text-wrapper commentText withImage">
							<div id="commentBigChart{commentID}" class="commentBigChart js-comment-chart" onclick="openViewChartPopup('{commentID}')">
					<img src="https://d1-invdn-com.investing.com/comments_images/{commentImage}" alt="{commentAlt}">
					<i class="newMagnifyChartIcon"></i>
				</div>
						<span class="js-text">{commentContent}</span>
			<div class="clear"></div>
							<div class="commentButtons js-not-master-user">
					<a href="javascript:void(0)" class="reply js-reply-btn" data-real-parent-id="{commentID}" data-to-user-name="{username}" data-to-user-id="">Reply</a>
					<div class="inlineblock likeDislikeBox js-like-dislike-box" data-item-id="{commentID}">
	<input class="js-like-checkbox" type="checkbox" name="option" value="Yes" id="like_{commentID}">
	<label for="like_{commentID}" class="like" title="I agree"></label>
	<span class="numOfLikes js-like-count lighterGrayFont">0</span>
	<input class="js-dislike-checkbox" type="checkbox" name="option" value="No" id="dislike_{commentID}">
	<label for="dislike_{commentID}" class="dislike" title="I disagree"></label>
	<span class="numOfDislikes js-dislike-count lighterGrayFont">0</span>
</div>

<div class="reportComment js-flag float_lang_base_2">
                            <a href="javascript:void(0);" id="commentFlag_{commentID}">
                                <span class="reportCommentIcon middle"></span><span class="inlineblock middle">Report</span>
                            </a>
                        </div>
                    				</div>
					</div>
	   </div>
	</div>
	</div>			</div>
			<div id="reply">
				
    <div class="commentReply js-comment js-comment-reply" data-comment-id="{commentID}" id="comment-{commentID}" data-user-id="">
		<div class="commentInnerWrapper"><a href="{userLink}" class="js-user-link"><img src="{userImage}" width="33" height="33" alt="{usernameAlt}" class="img" onerror="this.src='https://i-invdn-com.investing.com/defaultUserMaleTmp.png';"></a><div class="commentBody js-content">
            				<span class="commentUsername">
					<a href="{userLink}" class="commentUsername js-user-link js-user-name" onMouseOver="">{username}</a>
				</span>
                        <span class="js-date" comment-date="{dateFormat}" comment-date-formatted="{dateFormatted}" title="{dateTitle}">Just Now</span>
			 <div class="commentAuthor js-comment-by-author"><span class="commentAuthorIcon"></span>Author's response</div> 			<div class="commentDropDown js-commentDropDownWrapper " data-user-id="" data-cid="{commentID}">
	<a href="javascript:void(0);" class="threeDotsIconSmall js-thinDropdownArrow"></a>
	<div class="tooltipPopup commentActionsPop noHeader js-commentDropDownOptions displayNone">
		<div class="addRow js-option share">
			<a href="javascript:void(0);" class="js-commentSharePopup" data-cid="{commentID}" data-curl="{commentLink}"><span class="smallShareIcon middle"></span>Share</a>
		</div>

</div>
		<div id="commentText-{commentID}" class="js-text-wrapper commentText withImage">
							<div id="commentBigChart{commentID}" class="replyBigChart displayNone js-comment-chart">
					<img src="https://d1-invdn-com.investing.com/comments_images/{commentImage}" alt="{commentAlt}">
					<i class="newMagnifyChartIcon"></i>
				</div>
				<span id="commentSmallChart{commentID}" class="commentSmallChart pointer js-comment-chart" onclick="openViewChartPopup('{commentID}')">
                    <img src="https://d1-invdn-com.investing.com/comments_images/{commentImageSmall}" width="116" height="52" alt="{commentAlt}">
                    <span class="chartMagnifyOverlay displayNone"></span>
                    <span class="searchGlassIcon chartMagnify displayNone"></span>
                </span>
						<span class="js-text">{commentContent}</span>
			<div class="clear"></div>
							<div class="commentButtons js-not-master-user">
					<a href="javascript:void(0)" class="reply js-reply-btn" data-real-parent-id="{commentID}" data-to-user-name="{username}" data-to-user-id="">Reply</a>
					<div class="inlineblock likeDislikeBox js-like-dislike-box" data-item-id="{commentID}">
	<input class="js-like-checkbox" type="checkbox" name="option" value="Yes" id="like_{commentID}">
	<label for="like_{commentID}" class="like" title="I agree"></label>
	<span class="numOfLikes js-like-count lighterGrayFont">0</span>
	<input class="js-dislike-checkbox" type="checkbox" name="option" value="No" id="dislike_{commentID}">
	<label for="dislike_{commentID}" class="dislike" title="I disagree"></label>
	<span class="numOfDislikes js-dislike-count lighterGrayFont">0</span>
</div>

Are you sure you want to delete this chart?

Delete Cancel

Post

Replace the attached chart with a new chart ?

Replace Cancel

1000

Comment Guidelines

Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.

Please wait a minute before you try to comment again.

I feel that this comment is:

Spam

Offensive

Thank You!

Your report has been sent to our moderators for review

Central Banks

Interest Rates

Next Meeting

FED

5.25%

Jun 14, 2023

ECB

3.75%

Jun 15, 2023

BOE

4.50%

Jun 22, 2023

SNB

1.50%

Jun 22, 2023

RBA

4.10%

Jul 04, 2023

BOC

4.75%

Jul 12, 2023

RBNZ

5.50%

Jul 12, 2023

BOJ

-0.10%

Jun 16, 2023

CBR

7.50%

Jun 09, 2023

RBI

6.50%

Jun 08, 2023

PBOC

3.65%

BCB

13.75%

Jun 21, 2023

US 30	33,682.1	+17.1	+0.05%
US 500	4,266.9	-0.6	-0.01%
Dow Jones	33,665.02	+91.74	+0.27%
S&P 500	4,267.52	-16.33	-0.38%
Nasdaq	13,104.89	-171.52	-1.29%
S&P 500 VIX	14.07	+0.13	+0.93%
Dollar Index	103.957	-0.098	-0.09%

Crude Oil WTI	72.72	+0.19	+0.26%
Brent Oil	77.14	+0.19	+0.25%
Natural Gas	2.316	-0.013	-0.56%
Gold	1,960.95	+2.55	+0.13%
Silver	23.782	+0.253	+1.08%
Copper	3.7815	+0.0255	+0.68%
US Soybeans	1,355.25	-4.75	-0.35%

U.S. 10Y	3.801	+0.015	+0.40%
U.S. 30Y	3.952	+0.015	+0.39%
U.S. 5Y	3.944	+0.025	+0.64%
U.S. 3M	5.383	+0.065	+1.23%
US 10Y T-Note	113.06	-0.16	-0.14%
Euro Bund	133.29	0.00	0.00%
10-2 Yield Spread	-82.19	-3.87	4.94%

Apple	177.82	-1.39	-0.78%
Alphabet A	122.50	-4.81	-3.78%
Tesla	224.57	+3.26	+1.47%
Amazon.com	121.23	-5.38	-4.25%
Netflix	399.77	+0.48	+0.12%
Meta Platforms	263.60	-7.52	-2.77%
Bank of America	29.48	+0.25	+0.86%

USD/JPY Finds Support Ahead of FOMC, but Bears Still Loom

Related Articles