Some Yen weakness helped to deliver a wedge breakout on the USD/JPY and GBP/JPY but most other instruments are little changed ahead of today’s FOMC rate update. Momentum is declining across many instruments so watch for any new momentum-based trend line breakouts BUT caution is needed with FOMC.

The DXY continues to hover near a support level and this has slowed the pace of movement on some FX pairs. Keep an eye on the charts below for any new momentum trend line breakout.

It seems like the main Forex movers have paused following their recent breakout runs and this is not too surprising. I had warned yesterday to watch the DXY for any reaction at the 61.8% fib and this indeed evolved. This pause has, in turn, paused the Forex runs that have been in progress.

I had warned you in my weekend update to watch the GBP/USD for any bullish run from the new wedge breakout and it delivered in spades on Monday so I hope you all caught some of this move! The US$ remains weak BUT is currently at a potential support zone so watch for any reaction.

The US$ remains under pressure despite the batch of upbeat US data released during last session. US stocks moved higher and the US$ weakness helped trigger a new breakout on Gold and to develop those in play on some FX pairs.