USDINR
The USDJPY showed a muted upside response as the US Advance GDP figure came in at 1.9%, which was slightly better than 1.6% that the markets had expected. However, the figure was 0.1% lower than the previous figure, showing that there has been some contraction of the US economy since the last reported quarter.
The USDJPY is trading at 108.90 as at the time of writing, and continues to trade with low volumes in a tight range that extends from 108.40 (50% Fibonacci retracement) to the upper barrier at 109.36 (61.8% Fibonacci retracement level and August 1 high).
These two price areas remain the levels to beat when the FOMC rate decision is made public in a few hours from now. Obviously, traders are waiting for that big release to decide where to send the USDJPY to.
A break of 109.36 will target the May 21 high (78.6% retracement level) at 110.67. Above this level, the April 24 high at 112.47 is the next target resistance, which sees full upside retracement to that swing high.
On the flip side, a USD-negative rate decision/statement could open the door for a retreat to 107.40 (38.2% Fibonacci retracement), or even as low as 106.84 (June 25 previous low as well as previous highs in role reversal on August 13 to 15).