USD/JPY ahead Fed decision: Strong demand zone in place?
Today will be released the major economic data of the week at 18:00 GMT, where the US Federal Reserve will decide about to hike or hold the interest rate during this month, which remains at 0.50%. Analysts don't expect, with current US economic conditions, that the central bank will hike the rates in June. Also, in a global overview, with the Brexit referendum to take place next week, Fed could be considering to wait for results before to take any major decision.
30 minutes later, Fed's chairwoman Janet Yellen will speak and possibly, during her speech, US Dollar could take a clearer decision about its direction. At the H4 chart of USD/JPY, there is a key level on place at 105.67, as we see it as a very strong demand area. If Fed's favors a rate hike today, pair can test the resistance level of 107.71, and possibly it could attempt a bullish consolidation above 200 SMA. In a scenario where the officials decide to hold the rates during June, then possibly it could break the 105.67 level, toward 104.72 in a first degree.