USDJPY – bulls pressure multi-decade highs at 150.90/94 ahead of Fed’s verdict

Strong bullish acceleration extends into the second consecutive day, pushing the price close to key barriers at 150.90/94 (multi-decade peaks hit in 2023 and 2022).

The Japanese yen came under increased pressure from BoJ’s dovish hike which signaled that Japan’s monetary policy will remain accommodative even after the central bank ended its negative interest rate policy.

On the other hand, the Fed is likely to keep its hawkish stance, as high borrowing cost hasn’t caused significant negative impact on the economy, while fresh rise in inflation warns that policymakers may review the timing, the pace and size of widely expected rate cuts in coming months.

The fact that wide gap between two central banks’ interest rates will persist, will continue to inflate the dollar.

The US central bank is widely expected to keep the interest rate unchanged, and markets will focus on the Fed’s projections and remarks from Chair Powell for fresh signals.

Daily studies are in full bullish setup but overbought, which may cause strong headwinds at key 152 resistance zone.

Former top at 150.88 reverted to solid support, guarding 150 pivot.

Res: 151.90; 151.94; 152.56; 153.00
Sup: 150.88; 150.00; 149.45; 148.98