Japanese Yen Remains Volatile: Analysis For USD/JPY, EUR/USD, AUD/USD, NZD/USD

USD/JPY Attempts To Settle Above The Resistance At 141.80 – 142.50

USD/JPY rebounded from recent lows and is trying to settle above the resistance at 141.80 – 142.50. Today, Fed will release its Interest Rate Decision, which will serve as the key driver for forex markets. Analysts expect that Fed will cut the rate from 5.5% to 5.25%. USD/JPY traders will also react to Powell’s comments, which may have a material impact on market dynamics. Traders will also have a chance to take a look at Building Permits and Housing Starts reports from the U.S., but it remains to be seen whether these reports will have any impact on USD/JPY.

If USD/JPY manages to settle above the resistance at 141.80 – 142.50, it will move towards the next resistance level at 146.00 – 146.50.

EUR/USD Gains Ground Ahead Of Inflation Data

EUR/USD gains some ground as traders prepare for the release of the final reading of the Euro Area Inflation Rate report. The report is expected to show that Euro Area Inflation Rate declined from 2.6% in July to 2.2% in August. From a big picture point of view, traders will stay focused on Fed decision.

EUR/USD continues its attempts to settle above the strong resistance level at 1.1110 – 1.1135. A move above 1.1135 will open the way to the test of the next resistance at 1.1185 – 1.1200.

AUD/USD Tests New Highs

AUD/USD is moving higher as traders focus on Westpac Leading Index report. The report showed that Leading Index declined by 0.1% month-over-month in August, compared to analyst forecast of 0%.

In case AUD/USD climbs above the 0.6770 level, it will head towards the nearest resistance level, which is located in the 0.6815 – 0.6825 range.

NZD/USD Gains Ground On Fed Day

NZD/USD is also moving higher amid rising demand for commodity-related currencies.

RSI remains in the moderate territory, so there is plenty of room to gain additional upside momentum in case the right catalysts emerge.

For a look at all of today’s economic events, check out our economic calendar.