USDJPY overview 28.07.2021

USDJPY rises on stronger dollar.

USDJPY under the bullish pressure today driven up by the U.S. dollar positive sentiment ahead of the outcome of a U.S. Federal Reserve meeting. The dollar has enjoyed a month-long rally after a hawkish shift from the Fed in June. Markets are waiting to see whether it will provide any clues on the timing of tapering later in the day amid surging U.S. inflation. The Fed will publish a statement at 1800 GMT today followed by a news conference from Chair Jerome Powell at 1830 GMT. Still, the chances are high that the Fed will not shift policy, given its view that the recent spike in inflation will likely be transitory and worries that growing COVID-19 cases could derail the global recovery.

Expect buyers on downward corrections.

Next resistance to watch – 110.60

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