FxWirePro: USD/JPY ignores upbeat U.S. GDP data, rangebound around 200-DMA ahead of FOMC meeting

USD/JPY chart - Trading View 

• USD/JPY trades rangebound around 200-DMA as traders shrugged off strong GDP data on Friday.
   
• It is a quiet start to the week as Japan remains closed on account of Showa day holiday, with no data scheduled in other Asian economies.
   
• According to Friday's GDP report, the US economy grew 3.2% in Q1, significantly better than the market's 2.3% forecast. 
   
• The greenback subdued ahead of Fed policy meeting later this week as investors worry that softer price growth will prevent the central bank's optimism.
   
• Since the last Fed meeting, data has been positive. Job growth, retail sales, manufacturing activity and inflation ticked higher. 
   
• Markets now await to see if the FOMC policymakers will recognize the improvements in data. 
   
• That said, U.S. Treasury yields edge lower, suggesting market is anticipating more dovishness coming from US policymakers.
   
• Technical indicators are inconclusive. The pair is hovering around 200-DMA and RSI is flat-lined around 51 levels.
   
• Below 200-DMA the pair finds serious of strong support till daily cloud at 110.88. Break below cloud top to see further weakness. 
   
• Focus this week also on U.S. for ISM manufacturing and non-farm payrolls for further clues. 

Support levels - 111.50 (200-DMA), 111.31 (50-DMA), 110.88 (cloud top)

Resistance levels - 111.75 (5-DMA), 112, 112.40 (Apr 24 high)

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.