Yesterday, when there was news that the Fed will be unlikely to change its dovish tone during the FOMC meeting today, the whole market reacted strongly and investors try to push US dollar down below 107.00. However, the buying pressure below 107.00 was really very strong and we can see that US dollar made another false break below 107.00 and closed the day almost unchanged.
The FOMC meetings is coming today, but we don’t see any signs of profit taking yet, the uptrend momentum of USDJPY is really very strong now and any dips below 107.00 will be a good chance to join the uptrend. If today USDJPY break 107.400, it will move much faster to 108.00.
Forex Trading Signals:
We will waiting for signals to long US dollar if it pull back down below 107.00 or buy when it break 107.400 before FOMC meeting today.