Action Insight Daily Report 9-16-24

FOMC Uncertainty Looms Over Quiet Markets as Yen Strengthens

Market activity in Asia has been unusually subdued today, with trading volumes even quieter than expected for the first session of the week. The holiday closures in Japan and China are partly responsible for the reduced momentum, but a larger factor looms over the markets: the upcoming FOMC meeting, which is one of the most uncertain in recent memory. With just days to go, the odds of either a 25bps or 50bps rate cut remain balanced, making it a genuine 50/50 scenario that has traders on edge.

This uncertainty is contributing to the cautious tone across markets globally, and the direction for the rest of the week will hinge largely on the outcome of Wednesday's Fed decision. It's not just about the rate cut but also about the signals Fed will send regarding its future path of policy easing.

Among the currencies, Japanese Yen, the strongest performers this month so far, looks ready to break higher against several of its major counterparts. While Euro is showing resilience as the second best, remains vulnerable against Sterling and the Swiss Franc. Commodity currencies, including the Australian and New Zealand Dollars, have lagged behind for the month, but they may find renewed strength if US stocks rally after the Fed's decision....

Top Movers | HeatMap | Pivot Points | Pivot Meters | Action Bias | Vol

USD/JPY Daily Outlook

Daily Pivots: (S1) 140.08; (P) 140.99; (R1) 141.69; More...

Intraday bias in USD/JPY remains on the downside for 139.26 fibonacci level. Some support could be seen there to bring rebound. But outlook will remain bearish as long as 143.03 resistance holds. Decisive break of 139.26 would carry larger bearish implications, and target 61.8% projection of 161.94 to 141.67 from 149.35 at 136.82.

EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD

EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY

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