FxWirePro: USD/JPY depressed ahead of Fed policy meet, retrace below 200-DMA reinforces bearish bias

USD/JPY chart - Trading View 

USD/JPY trades rangebound after 2 straight sessions of downside. Bias has turned bearish after break below 200-DMA. 

The major was trading rangebound at 107.64 at around 03:45 GMT, after closing 0.65% lower in the previous session. 

Broader trading sentiment remains sluggish ahead of the key US Federal Open Market Committee (FOMC) meeting due later today at 18:30 GMT.

The Fed is not expected to alter its benchmark Fed rate. Focus shall be on the quarterly rate projections and economic forecasts, followed by Chairman Jerome Powell’s speech for impetus.

Technical indicators have turned bearish after retrace below 200-DMA. Stochs and RSI are sharply bearish and MACD is on verge of bearish crossover on signal line.

Price action is holding support at major trendline support at 107.65. Break below will see further weakness. 

Major Support Levels: 

• S1: 107.53 (Cloud top)
• S2: 107.07 (May 29th low)
• S3: 106.44 (Cloud base)

Major Resistance Levels: 

• R1: 107.91 (Kijun Sen)
• R2: 108.40 (200-DMA)
• R3: 109.17 (110W EMA)

Summary: Technical bias has turned bearish after the pair has failed to hold 200-DMA support. Focus on FOMC meeting for further impetus. US inflation data (due 12:30 GMT) will also have major impact.