FxWirePro: USD/JPY extending sideways around 111 handle, focus on BoJ policy meet

• USD/JPY extending sideways around 111 handle as markets eye Bank of Japan (BoJ) policy meeting.
   
• The central bank is expected to justify prolonging the current monetary easing policy this week.
   
• US GDP data last Friday was largely in-line with expectations, but failed to impress USD bulls.
   
• US Q2 GDP rose by 4.1% saar, below some of the punchier estimates, albeit still reading at the highest levels since 2014 Q3.
   
• The major is consolidating between key support and resistance levels at 50-DMA and 21-EMA.
   
• Technical studies are neutral. Breakout could provide clear directional bias.
   
• Breakout at 21-EMA could see test of 113.17 (July 19 high). While break below 50-DMA could see drag till 200-DMA at 110.06.

Support levels - 111, 110.56 (100-DMA), 110.06 (200-DMA)

Resistance levels - 111.65 (50% Fib of 118.662 to 104.629 fall), 112, 113.17 (July 19 high)

FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at 37.3634 (Neutral), while Hourly JPY Spot Index was at 73.9293 (Neutral) at 0415 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.