FxWirePro: USD/JPY flat-lined around 5-DMA, awaits FOMC for further impetus

USD/JPY chart on Trading View used for analysis

• USD/JPY trades slightly higher on the day at 113.48, up 0.09% at the the time of writing.
   
• China's disappointing Nov IP and retail sales data have raised fears that global growth is coming under pressure.
   
• Focus now on the Fed and BoJ monetary policy decisions this week for further impetus.
   
• The Fed funds rate futures also continued to price the chance of a rate hike this week around 75% with a March 2019 rate hike given a 30% chance.
   
• Analysts at Danske Bank expect that the Fed will probably remove more of its forward guidance to increase its flexibility.
   
• There is likely to be an emphasis on a data dependent and risk management approach and we expect a muted reaction.
   
• The Bank of Japan policy meet is scheduled for Thursday, 20th Dec and will likely be a non-event.
   
• Technical indicators for the major are in neutral territory. Price action continues in a 'Symmetric Triangle' pattern. Breakout will provide better direction.
   
• Immediate support is seen at 20-DMA at 113.25, while major resistance is seen at 113.85 (Major trendline).

Support levels - 113.41 (5-DMA), 113.25 (20-DMA),113

Resistance levels - 113.70 (Dec 13 high), 113.85 (major trendline), 114

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