The USD/JPY pair continues to hold steady in a range as investors focus on the FOMC Meeting Minutes to give the market some direction.
Key Points
- USD/JPY price suffered a 0.1% drop on Tuesday. Today, the pair holds steady ahead of the Fed minutes for more clues.
- The pair remains in a week-long range as investors wait for the FOMC Minutes to infuse some volatility amidst fundamental uncertainties.
- The $150.064 remains a crucial support level for the pair today.
USD/JPY Daily Price Analysis – 21/02/2024
Although the USD/JPY was slightly bearish yesterday, the lack of volatility in the market limited the loss to only about 0.1% of its value. Today, so far in the European session, the pair gained 0.04%, trading at $150.086.
So far this week, markets are calm with low volatility, as investors’ attention is shifting toward the FOMC’s Meeting Minutes later today. Market analysts and traders are looking for this data to better understand how the Fed plans to handle its inflation.
In Japan, uncertainties remain over the BOJ’s ultra-loose monetary policy. The recent verbal intervention of Japan in the Russia-Ukraine way also adds some geopolitical spice of confusion about where the JPY might be headed.
Technically, the EMA-50 and the MACD indicate a bullish sentiment for the pair in the short term.
USD/JPY Intraday Technical Analysis – 21/02/2024
Looking at the price action, the USDJPY has dipped into a range that’s lasted for about a week. Today, during the Asian session, the price bounced between the 0.786 and 0.382 Fibonacci levels on the hourly chart. When zooming into the 15-minute chart and plotting another Fibonacci from the high of that Asian session ($150.441) to its low ($149.685), new tradeable price levels reveal.
The first is the $150.064 support, coinciding with the 0.384 Fibonacci retracement level. A break below this support brings into view $149.974 (0.618 fib level) and $149.846 (0.786 fib level).
On the upside, we might see the price crossing the $150.154 level to hit higher levels of $150.265 or even the highest price level during the Asian session of $150.444.
Key Economic Data and News to Be Released Today
Today at 19:00 GMT, the FOMC meeting minutes will be released. That’s the main focus, as the report may provide clues about the Fed’s rate cut policy. If there are signs of a delay in rate cuts in the meeting, as investors are expecting, the US Treasury yields will get a boost. If this happens, the USD may strengthen versus other currencies. On the flip side, if there are hints from the meeting that the rate cuts may come earlier than anticipated, the USD may take a hit.
USD/JPY Key Fibonacci Price Levels 21/02/2024
Based on the 1hr chart, the key Fibonacci price levels for USD/JPY are these:
| Support | Resistance |
| $150.140 | $150.139 |
| $149.907 | $150.468 |
| $149.676 | $150.888 |
| $148.390 |
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