USD/JPY Price Analysis: Flirts with weekly low, around 147.00 mark ahead of FOMC

• USD/JPY comes under renewed selling pressure amid broad-based USD weakness.
• The 200-period SMA on the 4-hour chart is likely to act as a pivotal point for bulls.
• A sustained move beyond 148.00 is needed to negate any near-term bearish outlook.

The USD/JPY pair meets with a fresh supply on Wednesday and continues losing ground through the early North American session. The second successive day of a negative move is sponsored by the emergence of fresh US dollar selling and drags spot prices below the 147.00 round-figure mark in the last hour.

Looking at the broader picture, the USD/JPY pair, so far, has managed to defend the 200-period SMA on the 4-hour chart. The said support is currently pegged near the 146.15-146.10 region and should act as a pivotal point. A convincing break below will set the stage for the resumption of the recent pullback from the 152.00 neighbourhood, or the highest level since August 1990 touched in October.

Spot prices might then accelerate the fall further towards last week's swing low, around the 145.00 psychological mark. A convincing break below the latter will be seen as a fresh trigger for bearish traders and make the USD/JPY pair vulnerable. The subsequent downfall could pave the way for a slide towards the 144.50 intermediate support before the pair eventually drops to the 144.00 round figure.

On the flip side, any attempted recovery might now confront resistance near the 147.60-147.65 region, above which the USD/JPY pair could aim back to reclaim the 148.00 mark. Some follow-through buying beyond the 148.25-148.30 hurdle will negate any near-term negative bias and lift spot prices towards the 148.80-148.85 supply zone. This is closely followed by the 149.00 round-figure mark.

A sustained strength beyond the latter will shift the near-term bias back in favour of bullish traders and lift the USD/JPY pair back towards the 150.00 psychological mark. The upward trajectory could get extended towards the next relevant resistance near the 150.40-150.50 region en route to the 151.00 round-figure mark.

USD/JPY 4-hour chart

Key levels to watch