FxWirePro: USD/JPY hovers around 21-EMA, FOMC meeting in focus for further impetus

• USD/JPY has closed the bearish gap open and edged above 21-EMA at 109.57.
   
• The pair ignores G7 disaster, is trading 0.22% higher on the day at 109.75 at the time of writing.
   
• US President Trump withdrew his signature from the summit's G7 communique that called for fair and balanced trade.
   
• A better-than-expected China producer price index (PPI) on Saturday is keeping sentiment buoyed.
   
• The uptick could be short lived if the stock markets across the globe react in a negative manner. 
   
• Upside remains capped below 5-DMA at 109.77. Break above finds next major resistance at 200-DMA at 110.17.
   
• On the downside, decisive break below 21-EMA could see test of 50-DMA at 108.90. Further weakness only on break below.
   
• FOMC (Wed) is highly likely to raise rates. The post-meeting statement’s and forward guidance language will be in focus.

Support levels - 109.57 (21-EMA), 109, 108.90 (50-DMA)

Resistance levels - 109.77 (5-DMA), 110, 110.17 (200-DMA)

FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at -2.9525 (Neutral), while Hourly JPY Spot Index was at -15.309 (Neutral) at 0415 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex. 

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