The 200-hour SMA prevented the USD/JPY currency pair from appreciating yesterday, causing the Buck to remain relatively unchanged over the day. Today all eyes are on the Fed, as the tone of its meeting is likely to be the main market driver. From a technical perspective, the Greenback is likely to weaken against the Yen again, as the pair recently broke out from the broadening rising wedge pattern, the 200-hour SMA and the six-week down-trend keep providing rather strong resistance above the 110.00 mark, and technical indicators in all timeframes continue to emit bearish signals. With all signs suggesting a downside development, a positive surprise is likely to have a strong impact on the exchange rate should it occur, with the 111.50 area expected to be the intraday ceiling.
