Here are some levels to keep an eye on in the dollar yen
- Up - This is the most dangerous side as the market is coiled to pop. We'll likely be at 122.00 in a heartbeat if patience is removed and above there it's open skies. 122.20 may stand in the way for a bit but it's unlikely to hold a big blow up. The next areas to watch are the July 2007 high at 123.66 and the June 2007 high at 124.13. If we blow it's going to be a case of watching for a retest from there on. 121.50/60 is an area I'd watch for any signs of support if we move through, or if we pause above there while waiting for Yellen.
- Down - Any dovishness from the FOMC will give the dip buyers a great opportunity. If patience stays in the statement you can forget about the 120.70 level I've highlighted recently. There's a broken trendline from Dec 2014 that marke the highs until the break this month. That comes in at 120.20. The uptrend line from Jan is under there at 119.95. From there it's support at 119.40/50, then the 100 and 55 dma's close together at 118.99/119.03. 118.60 is next then the stronger 118.25/30 and the old pivotal 118.00/05 area
USDJPY daily chart
That should be enough to see out the moves today but always expect the unexpected
