FxWirePro: USD/JPY consolidates previous session's gains, caution seen ahead of US CPI data and FOMC policy meeting

Chart - Courtesy Trading View 

USD/JPY was trading rangebound at 137.65, after closing 0.79% higher in the previous session.

Cautious mood seen among traders ahead of the release of US Consumer Price Index (CPI) data for November.

US CPI is expected at 7.3% YoY versus 7.7% prior. US consumer inflation figures will play a key role in driving the US Dollar demand ahead of FOMC meeting.

Mixed concerns surrounding the Bank of Japan’s (BOJ) next moves and sluggish US Treasury yields also keep the major rangebound.

The highly-anticipated FOMC monetary policy decision on Wednesday will determine the next leg of a directional move for the major.

Technical Analysis:

- USD/JPY has shown a decisive bounce off 200-DMA support

- MACD confirms a bullish crossover on signal line

- Price action has retraced above 200H MA

- GMMA indicator shows bullish shift on the intraday charts

Major Support Levels: 137 (5-DMA), 136.33 (200H MA)

Major Resistance Levels: 138.62 (21-EMA), 139.49 (110-EMA)

Summary: USD/JPY poised for further upside. Weakness only below 200-DMA.