Markets brace for volatile moves after FOMC – OCBC

USD/JPY was last seen at 141.63 levels. The pair rebounded alongside higher UST yields after better-than-expected US data. The FOMC decision should see USD/JPY more volatile, note OCBC FX analysts Frances Cheung and Christopher Wong.

FOMC to trigger USD/JPY volatility

“USD/JPY bounces back with UST yields higher after better-than-expected US data.”

“Daily Momentum shows no clear bias while the RSI has risen. Leaning to the downside, but still wary of near-term reversal risks. Resistance at 143.67 (21 DMA), 144.60 (23.6% fibo retracement from 2023 low to 2024 high). Support at 140.50, 139.60 and 138.”

“FOMC decision should see USD/JPY trade wildly in and after decision, press conference.”