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Pre FOMC USDJPY Technical Outlook
15/03/2017
Pre FOMC USDJPY Technical Outlook

Ahead of the big event (FOMC), we have spotted a very vital language put forward by the chart. join me as we look through Pre FOMC USDJPY Technical Outlook

15 March, AtoZForex -The dollar remained on the back foot ahead of a crucial day in FX trading as traders awaited the FOMC meeting decision and press conference in few hours from now. The greenback is trading lower across the board. Especially so against sterling which popped above the 1.2200 barrier in early London trade.

The market has completely priced in a rate hike and the only surprise would be if the Federal Reserve decided to keep rates steady – which is highly unlikely.
 
For now, USDJPY has consistently failed to take out the 115.00 figure despite hawkish rhetoric from the Fed and robust US economic data. That suggests that the market remains skeptical about any aggressive moves from the Fed and has essentially priced in much of the tightening. Unless Fed Chair Yellen signals a more hawkish posture USDJPY could sell off on the news. In short, unless USDJPY takes out the 116.00 figure today providing a clear signal that a new uptrend is in place, the pair will continue to remain rangebound.

Pre FOMC USDJPY Technical Outlook

Pre FOMC USDJPY Fractal Map

USDJPY 4H (Click to zoom)

Looking through the 4 hourly frame of the USDJPY, a map has been drawn ahead of the key FOMC event. A fractal model has surfaced which is suggesting a bearish move ahead. If the fractal model is correct, then 115.51 should continue to cap while the equality target of 111.68 should be the target area going by the language of the fractals. Hopefully, the key FOMC event may the fuel needed by the U.S dollar to push through to the equality target. Reckon that as long as 115.51 continue to hold as resistance, our outlook based on the fractal model remain intact.

What is your view on Pre FOMC USDJPY Technical Outlook? Please share your view in the comments section below.

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