USD/JPY is consolidating juuust under its 2023 highs ahead of this week’s FOMC event!
Will we see a breakout in the next few days?
Let’s take a look at the 4-hour time frame:
USD/JPY 4-hour Forex Chart by TV
As you can see, USD/JPY is having trouble making new highs after hitting (and getting rejected at) the 141.00 psychological handle.
Interestingly, the consolidation is forming what looks like an ascending triangle pattern on the 4-hour time frame.
But wait, there’s more!
The 100 SMA is also hanging around USD/JPY’s current prices, and both the 100 and 200 SMAs are still pointing to more potential gains for the dollar.
An upside breakout from the pattern opens the door to a trip to the 143.25 zone.
Of course, we could see a break-and-retest situation before the pair gains fresh upside momentum.
USD/JPY’s next upside moves might depend on how the markets react to this week’s FOMC statement.
If the Fed succeeds in communicating its hawkish bias despite a “skip” in interest rate hike this month, then USD/JPY could gain more pips.
Good luck and good trading this setup!
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