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Forex pairs in this Article » USD/JPY
FXstreet.com (Córdoba) - As the FOMC meeting gets underway, Christopher Vecchio, Currency Analyst at DailyFX notes that with markets geared for a disappointment – expectations are firmly biased towards a reduction in QE3 – anything close to a hold with a neutral tone could provoke one last leg lower in the USD/JPY.

"After topping on May 22 at 103.73, the USDJPY has been following the bearish path of a Rising Wedge, drawn from the April 2 low at 92.55. Similarly, the break below 95.20 last week may have also initiated another bearish pattern, a Broadening Wedge, drawn from the February 25 low at 90.84", says Vecchio.

"Accordingly, a break below 93.75 (last week's low) amid neutral/dovish commentary from the Fed and a sustained high pace of QE3 should prompt the next moves lower to 92.55 then potentially 90.84 over the coming week", he concludes.
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