FxWirePro: U.S. dollar under broad pressure ahead of Fed meeting, USD/JPY slips for the 4th consecutive session

USD/JPY chart on Trading View used for analysis

• USD/JPY edges lower for the 4th consecutive session on broad-based dollar weakness.
   
• Traders remain sidelined ahead of the Fed's announcement later in the day.
   
• The market is highly pricing in a dovish hike and volatility in bond yields is likely to rock markets.
   
• On the data front overnight, U.S. Builder Confidence fell again in December. 
   
• After plunging eight points in November, the NAHB Housing Market Index fell four points to 56 in December.
   
• However,total housing starts came in slightly stronger than expected and rose 3.2% during November.
   
• The Bank of Japan will announce its last rate decision of 2018 on Thursday, December 20th, late in the Asian session.
   
• The BOJ is set to keep its policy unchanged and focus will be on any hint of future changes.
   
• Technical indicators maintain their bearish strength. The pair has shown a breach at 'Symmetric Triangle' base raising scope for further downside.
   
• We see scope for test of 200-DMA at 110.85 on a dovish surprise.

Support levels - 112.20 (23.6% Fib), 111.37 (Oct 26 low), 110.76 (38.2% Fib)

Resistance levels - 112.98 (50-DMA), 113.06 (21-EMA), 113.70 (Dec 13 high), 113.85 (major trendline) 

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