The JPY continues strengthening against the USD and the pair decline may accelerate if, as traders of investment banks suggest, the Fed will not raise interest rates at the forthcoming meeting.
Many financial companies in the US believe that the monetary policy will remain unchanged and continue investing into US Treasuries, the amount of investment in which, according to preliminary estimates, reached a record high of $2.15 trillion. At the same time, the Fed may undertake so-called verbal intervention and outline the timing of a rate hike, thus, giving market participants the opportunity to prepare their positions.
Support and resistance
At present, the pair is trading at the level of 119.29.
Support level: 117.95.
Resistance level: 119.60.
Short positions can be opened after the breakdown of the level of 119.15 with the target at 118.40 and stop-loss at 119.60.