Hello and welcome to HiWayFX for January 26, 2016. On Tuesday the EUR/USD pair consolidates near the mark of 1.0850 by adding about 0.05%. As Reuters notes, “the major currencies did not stray far from recent ranges as investors were cautious ahead of the outcome of the Federal Reserve’s two-day policy meeting beginning later in the session. Investors will be parsing the U.S central bank’s message to determine what, if any, effect volatile global markets, plummeting oil prices and heightened fears of a Chinese slowdown will have on the Fed’s previously stated intentions to continue raising rates this year. U.S. interest rates futures implied traders placed a mere 13% chance the Fed will hike rates this week.” The resistance levels for the euro are 1.0890 and 1.0917. The support levels for the EUR/USD are following 1.0822 and 1.0768. This morning, the Japanese yen became stronger against the American dollar by adding over 0.3%. The USD/JPY pair breached down the level of 118, and, currently, trades near the level of 117.80. The key driver for the Japanese yen this week is the Bank of Japan’s two-day meeting that will end on Friday. According to Reuters, “Sources familiar with the Japanese central bank’s thinking say it is likely to cut its core consumer inflation forecast for the coming fiscal year to possibly below 1 percent. Most strategists and market participants expect the Bank of Japan to hold pat despite the increasingly worrying economic data and stressed markets though speculation that policymakers might muster additional stimulus steps have underpinned the greenback.” The resistance levels for the yen are 118.10 and 118.36. The support levels for USD/JPY are 117.65 and 117.42. Today, Oil falls below the key level of 30 dollars per barrel, by losing over 2%. Oil extended its losses as fresh worries about oversupply from top producers Saudi Arabia and Iraq spooked the market. Bloomberg notes that “the oil glut may limit any rallies. U.S. inventories are about 130 million barrels above the five-year average and supplies at Cushing, Oklahoma, the delivery point for WTI, are at a record. “It’s a temporary bounce,” said John Kilduff, a partner at Again Capital LLC a New York-based hedge fund that focuses on energy. “This is an opportunity to reload the gun on the short side.” The resistance levels for oil are $30.00 and $31.00. The support levels for oil are $29.30 and $29.00. Stay up-to-date with all the key financial news around the world by liking us on Facebook following us on Twitter and Instagram and subscribing to our YouTube channel. For more information please visit our website www.hiwayfx.com Thank you and have a good trading day.