Some last minute data on tap
The USDJPY held the 100 hour MA below during the Asian session.
It moved above the 200 day MA (at 120.807) in the London/European session.
The pair has traded above the 200 day MA last week, but could not sustain the upside momentum. The highs reached during those unsuccessful breaches? 120.96, then 121.19 and 121.319. Those become the next targets. The 200 day MA is the new bullish line in the sand. Traders who are long, will be most pleased with price staying above.
There is US housing starts (1160K estimate vs. 1206K last) and building permits (1159K estimate vs. 1130K last) and the weekly initial jobless claims (275K unchanged from last week) get in the way at 8:30 AM ET. The Current account will also be released. Then Philly Fed (est 5.9 vs 8.3) at 10 AM. Then the big event at 2 PM with the FOMC decision.
Traders will trade before the main event but understand that the action will be contingent on the set up flows before the decision. So action has the potential to be choppy. Right now it is more choppy in a quiet range.
