FxWirePro: USD/JPY holds marginal gains, investors await Federal Reserve's guidance for tapering and interest rate hikes
USD/JPY chart - Trading View
USD/JPY was trading 0.16% higher on the day at 109.55 at around 09:25 GMT, after closing 0.54% lower in the previous session.
The pair slipped lower from session highs at 109.70 as the US dollar edged lower in early European trade Tuesday, ahead of the start of this week’s crucial Federal Reserve meeting.
While risk-off sentiment stoked by China Evergrande's debt woes kept safe-haven demand for dollar and limited declines.
The Fed is likely to provide an outlook on how soon and how often they think the economy will need interest rate rises over the next three years at their policy meeting on Wednesday.
The major continues to extend choppy trade in 'Symmetric Triangle' pattern and break out will provide a clear direction bias.
Technical studies are tilted to the bearish side. Price action is below cloud and 200H MA.
Strong support is seen at 109.25 (Symmetric Triangle base), breach below will see dip till 200-week MA at 108.74 ahead of 38.2% Fib at 108.19.
On the flipside, 5-DMA is immediate resistance at 109.60. Decisive breakout above daily cloud negates any bearish bias.