Resistance 2:<\/strong> 149.02 \u2013 Trendline Resistance
Resistance 1:<\/strong> 150.91 \u2013 August High<\/p>\n\n\n\n
FX traders are preparing for more moves in the market later today when the Federal Reserve Bank delivers its long-awaited rate decision. This meeting has been touted as the next cut in the current cycle for the last few months, and the market is pricing in a 90% chance that we get a 25-basis-point cut, with the other 10% on an outsize 50-basis-point cut. The dollar broke lower in trading yesterday and now sits at vulnerable levels against several major currencies, and traders are expecting big moves in the market whatever the outcome later today.<\/p>\n\n\n\n
The likelihood is that we see a 25-basis-point cut, and moves will come from the forward guidance that we receive from the FOMC, with a more dovish outlook leading to more downside for the greenback, while a more conservative outlook \u2013 which the FOMC has been favouring for much of the year \u2013 would lead to some good relief rallies for the dollar in the majors.<\/p>\n\n\n\n
USDJPY is now sitting just above the long-term support line on the daily charts, with a dovish outcome or even the 50-point cut likely leading to a break lower, while a \u2018hawkish cut\u2019 would allow traders to leverage off that support level to buy the pair for a move back into the recent range.<\/p>\n\n\n\n
Resistance 2:<\/strong> 149.02 \u2013 Trendline Resistance
Resistance 1:<\/strong> 150.91 \u2013 August High<\/p>\n\n\n\n
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