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  • Market News
  • 13 June 2017 :: USD/JPY: FOMC decision may considerably inluence the dynamics of the pair
13 June 2017

USD/JPY: FOMC decision may considerably inluence the dynamics of the pair

By Kristina Leonova: Chief Analyst in the Investment Research Department

USD/JPY: FOMC decision may considerably inluence the dynamics of the pair
After the second wave of reduction the pair USD/JPY moved to the consolidation stage and has been trading in the lateral channel for five days.
Coniderable upward correction is explained by the growth of investor demand for USD in view of positive data from the US labor market in the beginning of the current week and comments on the possibility of two increase of FOMC interest rates this year.
This week the traders are waiting for important releases from the USA and Japan that may impact the movement tendency. FOMC decision on the interest rate and the economic stimulation program will be published on Wednesday. The toughening of measures will lead to growing demand for USD and further considerable increase of the US currency rate. If the increase of the interest rate and winding up of stimulation measures is postponed, the US currency may become the target of sales once again. Moreover, the data on the inflation, key indexes, and US industrial output are to be released. Japan will respond with its data on production output and interest rate decisions. Special attention should be paid to the follow-up comment of the Open Markets Committee. Verbal support may have good influence on the rate of USD.
Technically the pair remains in the downward channel which indicates low possibility of USD dropping against yen. In case the levels of 110.50, 110.80 are broken through, the way upward will be opened, and the possibility of change in the tendency will be high. Technical indicators don't provide a clear signal: MACD signal line is on the zero level, and Bollinger Bands are aligned in parallel to each ther which may indicate equal posibility of all scenarios.
Support levels: 110.95, 109.85, 109.50, 109.20, 108.75, 108.10, 107.30.
Resistance levels: 110.50, 110.80, 111.15, 111.45, 111.90, 112.40, 113.75.

This website/communication is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. It has been prepared by Liteforex (Europe) Ltd (ex. Mayzus Investment Company Ltd) without taking into account any particular person's objectives, financial situation or needs. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision. Past performance is not indicative of future performance. The future value of your investment may rise and fall with the changes in the market. 
About the author
Kristina Leonova
Kristina Leonova
Chief Analyst in the Investment Research Department

Kristina Leonova is an up and coming market specialist - currently in the process of obtaining The Chartered Financial Analyst Degree in CFA Institute.

She began her career at Liteforex (ex. Mayzus) at only 20 years old, holding the position of the Assistant of the Chief Financial Officer.

She has since become invaluable to the Company, holding the position of Chief Analyst in the Investment Research Department, and now is also responsible for our world renowned market reviews.

She has a keen eye and a good gut instinct when it comes to analyzing the markets, always staying at the top of her game, with her work often being published on other websites and news vendors.

Mayzus is excited to welcome her as our new, top financial analyst.

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