Fxwirepro: Usd/jpy Extends Gains for the Second Straight Session, Eyes 124.50

  • USD/JPY trades higher on FOMC led dollar gains, currently at 124.12, day’s range 123.86/124.18.
  • Fed kept rates unchanged although talked up the US economic conditions mainly pointing towards strengthening labour market.
  • The statement underscored that the economy had overcome a first-quarter slowdown and was now “expanding modestly.”
  • Comments by BOJ’s Ishida regarding accumulating risks from the prevailing easy policy also added to the yen weakness, pushing USD/JPY higher. 
  • Focus now on US GDP figures due later today while a slew of crucial Japanese releases due tomorrow will also be closely watched for further momentum in the pair.
  • Immediate resistance is seen at 124.20 (Daily Highs Jul 23/24), above which pair could extend gains to 124.50

Resistance Levels:R1: 124.19 (Daily Highs Jul 23/24)R2: 124.48 (Daily High Jul 21)R3: 124.57 (76.4% Fibo 125.86-120.41)Support Levels:S1: 123.34 (Cloud Top)S2: 123.33 (Daily Low Jul 29)S3: 123.07 (Daily Low Jul 28)

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