Today the USD faces major news and an important report – the FOMC Federal Funds rate decision. Besides the official rate announcement, the report includes the FOMC’s projection for inflation and economic growth over the next two years and, a breakdown of the individual FOMC member’s interest rate forecasts.
Technically, the USD/JPY broke the inner trend line (green) and since then has been in a retracement. However, we can see a hidden bearish divergence has been formed that cues for a trend continuation. Since the primary trend is down, we could see rejection from 106.30-40 towards 106.00, 105.80, 105.50. 4h candle close below W L3 aims for 105.03. For bulls to have the upper hand, only a strong momentum and 4h close above 106.70 should spike the pair towards 107.13.W L3 – Weekly Camarilla Pivot (Weekly Interim Support)
W H3 – Weekly Camarilla Pivot (Weekly Interim Resistance)
W H4 – Weekly Camarilla Pivot (Strong Weekly Resistance)
M H4 – Daily Camarilla Pivot (Very Strong Monthly Resistance)
M L3 – Daily Camarilla Pivot (Monthly Support)
M L4 – Daily H4 Camarilla (Very Strong Monthly Support)
POC – Point Of Confluence (The zone where we expect price to react aka entry zone)