Markets are bracing for volatile moves after FOMC – OCBC

USD/JPY was last seen at 141.63 levels. The pair rebounded, alongside higher UST yields after better-than-expected US data. FOMC decision should see USD/JPY more volatile, OCBC FX analysts Frances Cheung and Christopher Wong note.

FOMC to trigger USD/JPY volatility

“USD/JPY rebounded, alongside higher UST yields after US data came in better than expected.”

“Daily momentum is not showing a clear bias while RSI rose. Bias to the downside but still cautious of near term rebound risks. Resistance at 143.67 (21 DMA), 144.60 (23.6% fibo retracement of 2023 low to 2024 high). Support at 140.50, 139.60 and 138 levels.”

“FOMC decision should see USD/JPY trade wild into and post-decision, press conference.”