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Forex pairs in this Article » EUR/USD, USD/JPY (Moscow) - USD/JPY is in the bull mode today as the pair trades at 104.90, 50 pips higher from the opening level.

Will USD/JPY continue to grow after FOMC?

USD/JPY erased Monday losses as the Yen bulls failed to drive the pair below the key support area. Today the currency pair opened at 104.48 and managed to break above the assumed resistance area of 104.50. Now it trades close to 104.90 and seems to be determined to test the key 105.00 level. The Nikkei 225 moved higher today; it was another force behind the Yen downside that is negatively correlated to the stock market. No reports are scheduled today during Tokyo hours, so the traders have nothing but the technical indicators and general market sentiment to watch for. The FOMC minutes are published later today. If the decision to start tapering in January was widely supported the dollar may gain ground across the board and resume its longer-term upside trend in USD/JPY. Though the commentaries made by several FOMC members were rather contradictory. So if the minutes show that the decision was made in the course of heated dispute, the dollar is likely to be sold. Keep an eye to the first important resistance that lies over 105.00. The support comes at 104.00-103.90.

What are today’s key USD/JPY levels?

Today's central pivot point can be found at 104.49, with support below at 104.23, 103.90 and 103.64, with resistance above at 104.83, 105.39, and 105.42. Hourly Moving Averages are bullish, with the 200SMA at 104.86 and the daily 20EMA at 104.10. Hourly RSI is neutral at 64.53.
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