USDJPY recently broken under the bullish trend support that held since 3Q of 2016. Today, we might have experienced the retesting of that broken trend line. UJ may be at a bearish turning point here ifit holds the 110.100-110.500 level.
Technically, USDJPY is at the Daily 200MA, middle channel of Bollinger Band and the broken support which is now acting a resistance.
Fundamentally, all eyes are on the FED as markets are expecting a rate hike this month.
If this truly is a retest and USDJPY heads down from here we may see the lows indicated on the chat.
Otherwise, USDJPY's break may be considered a false breakout and wait for further signs of where it may go.
Technically, USDJPY is at the Daily 200MA, middle channel of Bollinger Band and the broken support which is now acting a resistance.
Fundamentally, all eyes are on the FED as markets are expecting a rate hike this month.
If this truly is a retest and USDJPY heads down from here we may see the lows indicated on the chat.
Otherwise, USDJPY's break may be considered a false breakout and wait for further signs of where it may go.
-FED meeting confirmed that one more rate hike is likely to happen in 2017 (likely September).
-FED did highlight some downside risks on inflation staying under its 2% target rate.
It is interesting where the market will go from here, personally I see some possibility of short to mid-term bullishness.