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Strong US Data Continues to Support USD, FOMC Meeting Minutes in Focus

USDJPY : Daily Chart

USDJPY today broke out from the key resistance at 102.99 and the resistance trend line of the rising channel. The pair should continue to surge and find the next resistance at 103.91. The upbeat data from US and disappointing trade report from Japan weighed on the pair and continue to push it upward. We can see that the 50 day SMA and 100 day SMA are contracting towards each other and 50 day SMA might cross above the 100 day SMA signaling an upward continuation.

On the other hand today, FOMC meeting minutes are releasing at 2 PM EDT and might change the USDJPY direction. Investors are looking for further guidance on future direction of monetary policy. Any dovish comments from the meeting will pressurize dollar and might pull it but the previous resistance at 102.99 would now be acting as support for the pair. If not able to hold this support the pair might again fall to the previous sideways territory. If the pair surges we might see pair testing resistance at 103.91 and break above it.