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Home » Daily Technical Reports » USD/JPY Today Technical Report 27/04/2016

USD/JPY Today Technical Report 27/04/2016

USD/JPY continued to trade in a consolidative mode yesterday, reflecting the indecisive mood of investors ahead of the Fed policy meeting. While the gyration around the 111.00 key level may continue, I would prefer to take the sidelines for now and wait for the outcome of the FOMC to determine the direction of the pair. An upbeat tone in the policy statement accompanying the decision could push the rate higher for another test of the 112.00 (R1) area, while a dovish statement may be the catalyst for a decisive break of the 110.85 (S1) zone. As for the broader trend, I still see a longer-term downtrend, but given that there is positive divergence between our daily oscillators and the price action, I would switch to flat for now as far as the medium-term picture is concerned.

YEN 27

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