USD/JPY breaks above 109.00 as yen slides ahead of FOMC statement
- USD/JPY finally manages to rise above 109.00.
- Yen losses momentum as Wall Street and US yields turn higher.
- Next key even: FOMC statement at 19:00 GMT.
The USD/JPY pair rose above 109.00 and also on top of Asian session highs. It peaked at 109.17 and it was hovering around the top, ahead of Fed’s decision. The market expects no change in rates and sees the FOMC with no significant surprises in the statement.
The move to the upside in the pair was boosted by a decline of the yen amid a rebound in Wall Street and also boosted by rising US yields. USD/JPY was moving already with a bullish bias at a slow pace.
The Japanese currency so far was among the worst performers but the US dollar was also under pressure. Data released earlier showed a strong ADP report with private-sector employers adding 234K new jobs during January, above the 185K of market consensus. The numbers failed to offer support to the greenback.
USD/JPY technical levels
To the upside, resistance levels might be located at 109.45/50, 109.75 (Jan 26 high) and 110.15/20 (Jan 27 high). On the downside, supports could be seen at 108.90, 108.55 (Jan 31 high) and 108.25 (Jan 26 low).