USD/JPY chart on Trading View used for analysis
- USD/JPY trades slightly higher on the day at 113.48, up 0.09% at the the time of writing.
- China's disappointing Nov IP and retail sales data have raised fears that global growth is coming under pressure.
- Focus now on the Fed and BoJ monetary policy decisions this week for further impetus.
- The Fed funds rate futures also continued to price the chance of a rate hike this week around 75% with a March 2019 rate hike given a 30% chance.
- Analysts at Danske Bank expect that the Fed will probably remove more of its forward guidance to increase its flexibility.
- There is likely to be an emphasis on a data dependent and risk management approach and we expect a muted reaction.
- The Bank of Japan policy meet is scheduled for Thursday, 20th Dec and will likely be a non-event.
- Technical indicators for the major are in neutral territory. Price action continues in a 'Symmetric Triangle' pattern. Breakout will provide better direction.
- Immediate support is seen at 20-DMA at 113.25, while major resistance is seen at 113.85 (Major trendline).
Support levels - 113.41 (5-DMA), 113.25 (20-DMA),113
Resistance levels - 113.70 (Dec 13 high), 113.85 (major trendline), 114
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