Thats it! USD/JPY Reverses This Week Ahead of FOMC

<p>&nbsp;Observing the price movement on the chart of the USD/JPY currency pair, the bullish trend that was displayed last week began to change its pattern in trading that continued into the beginning of this week.</p><p><br /></p><p>Until the close of the end of last week, the US dollar managed to show strengthening as the majority of market expectations remained for the Federal Reserve (Fed) to raise interest rates at this week's FOMC meeting.</p><p><br /></p><p>However, over time the momentum is fading if judged from the more horizontal price movement from the beginning of this week until yesterday.</p><p><br /></p><p>Market sentiment has influenced the current movement of prices as the FOMC meeting approaches.</p><p><br /></p><p>With several factors such as positive developments in China, earnings reports of tech giants and IMF projections on global growth have helped to restore market sentiment and make the US dollar weaker.</p><p><br /></p><p>While the Yen has yet to show a clear direction of movement, it is likely that investors are also looking forward to monetary policy guidance by the central bank of Japan (BOJ) after the interest rate decision at the end of this week.</p><p><br /></p><p>The USD/JPY chart, which showed a previous bullish pattern, reached the 141,900 level during the last surge last Friday.</p><p><br /></p><p>But continuing with the opening of the beginning of this week, the price was flat until yesterday with the lowest level of the price being around 140,750.</p><p><br /></p><p><br /></p><p>Yesterday's New York session saw the price start to move below the Moving Average 50 (MA50) barrier level on the 1-hour time frame on the USD/JPY chart, giving an early warning for a possible price drop.</p><p><br /></p><p>Movement is expected to be volatile while investors are cautiously awaiting the FOMC meeting early in the morning.</p><p><br /></p><p>If the price decline occurs, the price is seen to pass the 140,500 zone before tracking to the RBS (resistance become support) zone of 139,300.</p><p><br /></p><p>Falling below the important zone will give a clear signal for a bearish price movement that can push the price to the 137,000 support zone.</p><p><br /></p><p>However, if there is a surge in prices after the reaction of the FOMC meeting, the increase that passed the height of last week will be driven towards the level of 143,500.</p><p><br /></p><p>Continuing the climb higher will push the price to the next concentration zone around 145,000.</p>