FX.co ★ Forecast of USD/JPY for January 28, 2015

The US dollar weakens further against most major currencies after the mixed US economic reports. The CB consumer confidence index showed an uptick in January standing at 102.9 up from 93.1 in December. The new home sales in the US jumped to the 11.6% highest level in more than six years. The US services PMI has been rising for over five years. The index posted 54.0 in January from 53.3 in December. These are the US dollar supporting data. But on the other hand, US durable goods orders fell 3.4% in December following a 2.1% decline in November. The pair has been consolidating in a tight range between 118.85 and 117.10. On a positional basis, until the pair holds at 117.00 and trades above 118.85, it can give another stellar show towards 120.00+. In case if the pair breaks below 117.00, it can extend its fall up to 115.00 and panic will be triggered below 115.00. At yesterday's session, the pair made a low at 117.32. The pair has been testing the area near 117.00 for 5 days. The intraday support exists at 118.00 and 117.70. Today, the focus has shifted to the Federal Reserve's policy meeting. The key factor is the deadline of raising the benchmark short-term interest rates. On the hourly chart, the hourly candles closed, the pair is trading above moving averages. In case if the pair breaks below 117.70, the weakness will emerge at 117.00 and 115.50 on the down side.