USD/JPY steady below 102.00, waiting for the BoJ and the Fed

The yen is rising against European currencies on Tuesday and is practically unchanged versus the US dollar. USD/JPY remains steady hovering slightly below 102.00 as traders await two key central bank meetings.

On Wednesday, during the Asian session the Bank of Japan of Japan will announce its decision. Some speculate with a change in rates (cut) and more analysts point toward a change in the purchase program. Whatever the decision is, it is likely to impact on the yen.

Then during the second half of the American session, the Federal Reserve will announce its decision on momentary policy. Market consensus see no change in rates but risks are tilted toward a rate hike. The statement will also be watch closely. Volatility in the USD/JPY pair is likely to soar with the statement and then with Janet Yellen’s press conference.

Levels to watch 

The pair remains steady moving in ranges with a modest slightly bearish bias. Today’s decline found support above the 101.50 area and currently the pair trades at 101.85, around the same level it closed yesterday.

To the downside the immediate support area is seen at 101.50 (daily low), followed by 101.20 (Sep 7 low) and 100.65 (Aug 24 & 25 high). On the flip side, resistance could be located at 102.05 (daily high), 102.45 (Sep 16 high) and 103.05 (Sep 9 high).