The USD/JPY pair is trading with a bearish bias around 107.350 in the wake of increased haven appeal and weaker U.S. dollar. Today, the key focus will be on the FOMC monetary policy decision, which is scheduled to be announced later this Wednesday. The Fed is widely anticipated to keep interest rates unchanged at the end of a two-day meeting.
Investors will closely watch the accompanying policy statement and the Fed Chair Jerome Powell’s comments about the future policy outlook for taking fresh clues. In the meantime, Wednesday’s release of the latest U.S. consumer inflation figures will likely influence the USD price dynamics and produce some short-term trading opportunities during the early North American session.
The USD/JPY fell dramatically to violate the narrow trading range of 109.800 – 109.255, and now it’s trading somewhere around 107.900. On the 4 hour timeframe, the USD/JPY is likely to find support at 107.900, and below this, the upward trendline may extend support around 107.600 level. The Japanese currency pair has already crossed below 50 EMA, favoring selling bias in the pair today. Let’s consider taking selling trades below 108.50 today.
Entry Price – Sell 107.650
Stop Loss – 108.055
Take Profit – 107.250
Risk to Reward – 1
Profit & Loss Per Standard Lot = -$400/ +$400
Profit & Loss Per Micro Lot = -$40/ +$40