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CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

​​​​USD/JPY and USD/CAD move higher and AUD/USD falls back as markets await FOMC decision​​​​

​​The final Fed decision of the year looms, and FX markets are in cautious mood ahead of the news.

JPY Source: Bloomberg

​​​USD/JPY recoups Tuesday’s losses

​After rallying off the 200-day simple moving average (SMA) at the end of last week, ​​​USD/JPY has made further headway.

​Trendline resistance and a run of lower intraday highs stand in the way of fresh upside, though a close above ¥147.00 would suggest that more gains are likely, with the price heading back towards ¥149.80, and then on to the highs of November at ¥152.00

​A close back below ¥144.80 would suggest another push to the lows of last week could be on the cards.

USD/JPY chart Source: IT-Finance.com
USD/JPY chart Source: IT-Finance.com

​AUD/USD under pressure ahead of Fed decision

​​AUD/USD hit its highest level since the end of July at the beginning of December, but has since retraced below the 200-day SMA.

​However, the bounce from the lows does appear to be intact, and it would need a move back below the $0.65 level to suggest more losses were on the way.

​Despite this, the longer-term view remains bearish, the pair having declined since May 2021, recording lower highs since then. A continuation of this trend could see the price head back towards the October lows.

AUD/USD chart Source: IT-Finance.com
AUD/USD chart Source: IT-Finance.com

​USD/CAD edges above $C1.36

​The rally off the lows of last week has stalled for USD/CAD, though buyers continue to step in around $C1.354.

​Recent gains have been halted at $C1.36, so a close above here would mark a fresh bullish development, and even suggest a resumption of the rally from the lows of the summer.

​Alternately, a reversal back below the 200-day SMA and then below the early December low could see fresh losses towards $C1.34.

​USD/CAD chart Source: IT-Finance.com
​USD/CAD chart Source: IT-Finance.com

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