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USDJPY: Key Levels to Watch for Today’s Fed Rate Decision

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Fed rate decisions always trigger an increase in volatility. This is especially true for those that are accompanied by a press conference, as is the case with Wednesday’s event.

And just like any volatile event, I like to stay on the sideline to avoid getting caught up in the back and forth price action.

However, rate decisions and other market-moving news can also trigger breakouts. So instead of trading the news itself, I search through the aftermath to see if any favorable opportunities have developed.

The USDJPY is one pair I’ll be keeping an eye on following the upcoming Fed rate decision. We discussed this one over the weekend when it was trading at 110.81 and hadn’t yet retested the 111.90 resistance level.

A look at yesterday’s session shows how the pair encountered sellers at the 111.90 area. In fact, the session high was 111.88, just two pips below the key resistance level we reviewed on Sunday.

From here I’ll be watching for a break of the current range. Key support comes in at 110.90 while resistance sits at 111.90.

But like all breakouts, particularly those that occur during or after high levels of volatility, the session close at 5 pm EST will be key. A close above 111.90 would expose 113.15 while a close back below 110.90 would re-expose the 109.85 handle.

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USDJPY daily time frame with two key levels

Leave a Comment:

19 comments
Phumlani says

Awesome article …
Iv been following you these last few weeks. Super advice …

Reply
    Justin Bennett says

    Thanks, Phumlani. Pleased to hear you’re enjoying the content.

    Reply
Steve says

I really appreciate your advice it has helped me a great deal, I am just learning and it is good to receive such high quality expertise

Reply
    Justin Bennett says

    Hi Steve, glad to help. It’s always beneficial if you can develop good trading habits from the start.

    Reply
Sazali Udin says

Thanks Justin…..
Your review actually help me a lot ……

Reply
    Justin Bennett says

    Perfect. It’s good to know the material is helping. Feel free to reach out with questions.

    Reply
Farai says

Thanks for the insight

Reply
    Justin Bennett says

    You’re welcome.

    Reply
Imran says

Today If any H4 candle break near support & resistance can I take entry??

Reply
    Justin Bennett says

    I wouldn’t trade these levels on the intraday charts, particularly with the upcoming increase in volatility.

    Reply
Bongani says

Thank you Justin your work is great I am learning a lot from you

Reply
    Justin Bennett says

    I love hearing that, Bongani. Let me know if you have any questions. Cheers.

    Reply
martins says

you are amazing sir

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martins says

thanks a lot for the share

Reply
    Justin Bennett says

    You’re very welcome.

    Reply
Priceless says

GREAT ANALYSIS JUSTIN. CAN YOU PLS CONFIRM EURUSD (DAILY) FOR HEAD AND SHOULDERS PATTERN?

Reply
    Justin Bennett says

    Thanks. I don’t trade the head and shoulders on anything lower than the daily.

    Reply
Jared says

When a breakout happens due to volatility, do you always have to wait for a retest also or you just jump in since the momentum is established ?

Reply
    Justin Bennett says

    I always wait for a pullback, particularly if the market has overextended itself. If I miss out, so be it.

    Reply
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