USDJPY Technical Analysis – March 17, 2021

USD/JPY currency pair represents the currency exchange rate for the United State’s dollar and the Japanese yen. The USD/JPY currency pair is widely believed to have a close correlation with U.S. Treasuries. It is nicknamed as both Yen and Ninja.

The Yen has remained unchanged against the Dollar as investors keenly await fundamental release from the Federal Reserve. The USDJPY is seen trading above the breakout and now stalled in the resistance area. Investors are now eagerly awaiting the release of the Federal Open Market Committee (FOMC) rate decision which may influence the exchange rate as the central bank updates the Summary of Economic Projections (SEP), and the committee may adjust the forward guidance for monetary policy as Congress passes the $1.9 trillion coronavirus recovery package.

Reliable updates from IG Client Sentiment also reveals that majority of traders in Silver are long at 92.29%, while traders in Germany 30 are at opposite extremes with 82.19%. As Fed officials show greater willingness to scale back its emergency measures, the FOMC may generate a bearish reaction in the US Dollar as Chairman Jerome Powell warns that “it’s not at all likely that we’d reach maximum employment this year.”  Important market variables may continue to influence USDJPY as the US Dollar still reflects an inverse relationship with the investor confidence. Can the FOMC’s decision provide the necessary force needed to sustain it’s rally? News release coming later in the day will most likely give investors an inklin.