EUR/JPY resistance capping before FOMC tonight

FXStreet (Guatemala) - EUR/JPY is currently trading at 136.81 with a high of 136.85 and low of 136.61.

EUR/JPY is better bid through the week with a rise from below the 136.20/55 congestion and consolidation zone. The pair is now testing 136.80 resistance with an early bid in Tokyo with the euro picking up some demand after a poor day overnight, of which ground lost has now been fully recovered when it touched 1.1073.

The cross is finding some resistance here though as it breaks up through to meet the bearish opening gap's territory of the Greek saga Monday's this month, and that is keeping a lid on the pair. The main attraction for the week is the FOMC which will be up in tonight's US shift. However, analysts are predicting this could be a non event. Sean Callow, analyst at Westpac Banking Corporation explained, " Overall, it should be a low key release, with more helpful guidance on the Sep decision likely to be provided by the Fed speeches into the late August Jackson Hole conference."

Valeria Bednarik, chief analyst at FXStreet explained that the short term 1 hour chart shows that the 100 SMA extended higher below the current price, now offering an intraday support in the 136.20 region, although the technical indicators present a mild bearish tone below their mid-lines, inclining the balance towards the downside. "In the 4 hours chart, a slightly bullish tone prevails, as the technical indicators aim higher above their mid-lines, albeit lacking upward momentum. As commented on previous updates, the pair needs to advance beyond the 137.80 region to actually turn bullish, a level that the pair will hardly reach during the upcoming sessions."