In anticipation of the FOMC meeting, the US dollar has been showing some interesting price action against the Japanese yen and the euro. Let’s take a look at some potential setups for trading these currency pairs.
USD/JPY has been trading in a range between 110.00 and 112.00 for the past few weeks. Traders may consider looking for a breakout from this range to establish a new trend. A move above 112.00 could signal a bullish continuation, while a break below 110.00 could indicate a bearish reversal.
Meanwhile, EUR/USD has been trending lower, with the pair currently testing key support around 1.1700. Traders may watch for a break below this level to confirm a downtrend, with potential targets around 1.1600 and 1.1500. On the other hand, a bounce from 1.1700 could signal a reversal back towards resistance around 1.1800.
As always, traders should use proper risk management techniques and consider the potential impact of the upcoming FOMC meeting on these setups.