USD/JPY is currently struggling at the edge of 113.00 area after impulsive bearish pressure, bouncing off 114.00 recently. While USD is struggling with the economic reports, JPY managed to gain momentum which is currently being recovered ahead of the FOMC Meeting. The US regulator is widely expected to raise the official funds rate this time.
USD has been struggling against JPY amid downbeat economic reports. However, recent reports from Japan weakened the bearish pressure quite well. The pair is expected to extend bullish momentum in the coming days. Today the economic calendar contains no economic report or event in the US. Tomorrow US Consumer Confidence report is going to be published which is expected to decrease to 136.2 from the previous figure of 137.9. The report might lead to certain weakness on USD if the forecast comes true or the report reveals worse than expected figures. Besides, the US rate-setting committee is likely announce the rate hike decision which is certainly bullish for USD.
On the JPY side, the economy has been facing some headwinds that is confirmed by downbeat reports. Moreover, imbalance in the financial sector is hampering the small bank's progress. That's why BOJ is trying to adjust the inflation and bond purchases. Nevertheless, BOJ is still quite optimistic with the development, but the looming financial catastrophe affected JPY growth. Today Japan's Flash Manufacturing PMI report was published with a decrease to 51.8 from the previous figure of 52.9 which was expected to have a slight increase to 53.0 Ahead of the Core CPI, Retail Sales and Unemployment Rate reports this week with mixed expectations may lead to certain indecision in the pair.
Meanwhile, in light of downbeat economic report from Japan USD is likely to extend the upward trend versus JPY. USD obviously finds support from broad expectations of the imminent rate hike by the Federal Reserve. Thus, the market sentiment encourages further USD gains over all majors in the market.
Now let us look at the technical view. The price is currently residing above 113.00 area with an impulsive bullish momentum which may lead to further bullish pressure if the price manages to remain above 113.00 area with a daily close today. The price being held by the dynamic level of Tenkan line and Kumo Cloud as support is expected to lead to certain bullish pressure in the coming days. Ahead of high impact economic events and reports this week on both currencies of this pair, price is expected to be quite volatile. As the price remains above 112.00 area, the bullish bias is expected to continue.
SUPPORT: 112.00, 113.00
RESISTANCE: 114.50, 115.00
BIAS: BULLISH
MOMENTUM: VOLATILE
