Forex: USD/JPY movement limited ahead of Fed

FXstreet.com (San Francisco) - USDJPY extended its recovery from the 82.10 support area to 82.56 during the US session, and now looks set to retest and even break above the mentioned ceiling. However, the cross still maintains its neutral stance and "dips remain as interesting buying opportunities, as long as 81.50 holds," says Valeria Bednarik, Chief Analyst at FXstreet.com. "If this last gives up, chances are of a downside continuation towards the 80.80 strong static support." The analyst also says that there is little upside scope at current levels, unless a break above 82.80. If price advances above there, resistance is noted at 83.10.

Upcoming event risk is limiting the potential for action in USDJPY, as traders remain on the sidelines ahead of the Fed meeting later today (with expectations of new easing to be announced), the elections on Sunday and the BoJ next week.