FxWirePro: USD/JPY comatose above 55-EMA support, US dollar takes a breather ahead of Fed minutes

Chart - Courtesy Trading View 

Spot Analysis:

USD/JPY was trading rangebound at 134.15, with session high at 134.43 and low at 133.90

Previous Week's High/ Low: 135.58/ 131.73

Previous Session's High/ Low: 134.68/ 132.94

Fundamental Overview:

Investors turn cautious and refrain from placing any big bets as they await the FOMC meeting minutes.

Fed minutes will be watched for any insights on the size of the rate hike in the upcoming meetings. 

For September, markets are pricing in a 58% chance of a 50 basis point Fed rate hike.

Technical Analysis:

- USD/JPY capped between 55 and 21 EMAs, breakout will provide clear directional bias

- GMMA indicator shows major and minor trend are neutral on the daily charts

- 5-DMA is biased higher and momentum is bullish, stochs and RSI are biased higher

- Price action is within the daily cloud, breach below cloud will negate any further upside

- MACD is on verge of bullish crossover on signal line

Major Support and Resistance Levels:

Support - 133.61 (5-DMA), Resistance - 134.41 (21-EMA)

Summary: USD/JPY trades with a neutral bias. Decisive break out required to determine further direction.