FxWirePro: USD/JPY erases loses ahead of FOMC meeting, edges higher from session lows despite soft Retail Sales

USD/JPY chart - Trading View 

USD/JPY was trading unchanged at 103.68 at around 17:30 GMT, erasing early loses as markets await Fed policy decision. 

U.S. Markit Manufacturing PMI declined modestly in December to 56.5 from 56.7 in November, better than 55.7 expected.

Data showed that the economic activity in the manufacturing sector continued to expand at a robust pace.

Meanwhile, the Services PMI fell to 55.3 from 58.4 in November and missed analysts' estimate of 55.9.

Further, U.S. Headline Retail Sales dropped 1.1% more than expectations for a drop of 0.3%. Core Retail Sales dropped 0.9% versus expectations for a 0.1% rise.

Focus now on the Fed's latest monetary policy decision at 19:00GMT. Analysts expect interest rate to be unchanged, while new forecasts are likely to be more upbeat, signaling no urgency for further support.

Technical bias for the pair is bearish, but Dragonfly Doji on the day's candle at the time of writing raises scope for some pullbacks.

5-DMA is immediate resistance at 103.90. Any meaningful upside only above 21-EMA. Decisive break below trendline support at 103.45 negates any upside.