USD/JPY is consolidating juuust underneath its 2023 highs forward of this week’s FOMC occasion!

Will we see a breakout within the subsequent few days?

Let’s check out the 4-hour timeframe:

USD/JPY 4-hour Foreign exchange Chart by TV

As you’ll be able to see, USD/JPY is having hassle making new highs after hitting (and getting rejected at) the 141.00 psychological deal with.

Curiously, the consolidation is forming what seems like an ascending triangle sample on the 4-hour timeframe.

However wait, there’s extra!

The 100 SMA can be hanging round USD/JPY’s present costs, and each the 100 and 200 SMAs are nonetheless pointing to extra potential positive aspects for the greenback.

An upside breakout from the sample opens the door to a visit to the 143.25 zone.

In fact, we might see a break-and-retest scenario earlier than the pair positive aspects contemporary upside momentum.

USD/JPY’s subsequent upside strikes would possibly depend upon how the markets react to this week’s FOMC assertion.

If the Fed succeeds in speaking its hawkish bias regardless of a “skip” in rate of interest hike this month, then USD/JPY might acquire extra pips.

Good luck and good buying and selling this setup!