Forex: USD/JPY holds in ranges ahead of FOMC

Dollar is slightly up so far during the American session across the board. Against the Yen is moving in a small range with resistance at key level 91.50 and support at 91.30. In less than an hour the Federal Reserve will announce the FOMC decision. U.S. markets are waiting for the decision in the positive side, holding small gains. The Dow Jones is rising 0.25% and the Nasdaq is up 0.30%. On the other side, crude-oil is plunging 3.50% and the barrel is back below $70.

Despite minor corrections after the opening bell at Wall Street, the Yen is falling sharply against European currencies. GBP/JPY is testing levels above 150.00, facing resistance at 150.30. EUR/JPY jumped during the European session from 134.50 to 135.15. Currently trades at 135.05/10 which is 0.50% above today’s opening price.

“The USD/JPY pulled back yesterday as Dollar weakened across the board and U.S. equities rallied once again. However, the USD/JPY has bottomed above September lows and is strengthening as the EUR/USD and gold move lower. Hence, USD/JPY’s movements are clearly tied the currency pair’s correlations. We expect this pattern to continue today until Japan releases its Trade Balance data late Wednesday EST.”