USDJPY remains pressured below key resistance

Traders are anticipating increased volatility Wednesday amid key economic data and FOMC meeting.

Charts (2)

On the U.S. economic data front, the Conference Board's Consumer Confidence Index declined to 92.6 on month in July (95.0 expected), from a revised 98.3 in June.

Wednesday will be a busy day for U.S. Economic data. Here is what to look out for. 

The Mortgage Bankers Association's Mortgage Applications data for the week ending July 24th is expected. 

Wholesale Inventories for the June preliminary reading are expected to fall 0.5% on month, compared to -1.2% in the May final reading. 

Pending Homes Sales for June are expected to increase 15.0% on month, compared to a record high of +44.3% in May. 

Finally, the Federal Reserve is expected to keep the federal funds target rate between 0.00% and 0.25%. 

All eyes are on the USD/JPY as the pair continues to remain under pressure after breaking below key support at the 106.07 level which also corresponded to rising trend line support. Next support areas can be identified at the 104.55 and 103.45 in extension to test March lows. 

Source: GAIN Capital, TradingView

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