Chart - Courtesy Trading View
USD/JPY was trading rangebound at 129.96 at around 10:45 GMT, with session high at 130.20 and low of 129.96.
The major grinds sideways as traders stay wary amid pre-Fed trading lull. Some consolidation ahead of the potential breakout.
Technical indicators support the current bullish stance. A hawkish outcome from the Fed will propel the pair higher.
Markets have priced in a 0.50% rate hike and clues for balance-sheet normalization. Hence the Fed needs to do more to buoy the USD.
On the other side, an ultra-loose monetary policy by the BOJ has kept the Japanese yen on the edge.
Major Support and Resistance Levels:
Support levels:
S1: 129.18 (200H MA)
S2: 127.58 (20-DMA)
Resistance levels:
R1: 130.16 (5-DMA)
R2: 131.16 (Upper BB)
Summary: USD/JPY likely to stay volatile into the Fed meeting. Fed chair Jerome Powell's statement to dictate further direction.
