USD/JPY rallied in the early morning and now it stands at 109.52 level far above the former low of 109.12. The pair continues to move sideways, so we don't have a good opportunity right now. Still, I really hope that the FOMC meeting could bring a clear direction later today.
Fundamentally, the Bank of Japan kept its monetary policy unchanged at the September meeting after an 8-1 vote. You should be careful later today as the FOMC Statement, Economic Projections, and the FOMC Press Conference could bring sharp movements in USD/JPY.
The Fed is expected to keep its current monetary policy, but the Press Conference could bring aggressive moves in both directions.
USD/JPY Bounces Back
USD/JPY is trapped between the 110.41 and 109.11 levels. It has rebounded after reaching the support zone. Still, the pressure is high after dropping from the former symmetrical triangle. The US Dollar Index is still bullish, while the JP225 (Nikkei) seems vulnerable.
Technically, the USD/JPY pair could extend its downside movement only after registering a valid breakout through the 109.11 static support. On the other hand, an upward movement could be signaled only by a potential growth followed by a valid breakout through the 110.41 resistance.
Also, a major bullish pattern printed around the current levels could really signal potential growth.
Trading Conclusion
A valid breakout below 110.11 may signal more declines. This scenario could take shape if DXY and JP225 drop deeper.
