Chart - Courtesy Trading View
USD/JPY was trading 0.40% higher on the day at 143.48 at around 10:50 GMT.
The pair is extending sideways grind around 5-DMA, intraday bias remains neutral.
GMMA indicator shows major and minor trend are bullish. Volatility is high and momentum is bullish.
Stronger US CPI report released on Tuesday lifted bets for a more aggressive policy tightening by the Fed, which continues to underpin the greenback.
Caution prevails ahead of the upcoming FOMC meeting on September 20-21, for which the markets are pricing in the possibility of a full 100 bps rate hike.
Bank of Japan, on the other side, has been lagging behind other major central banks in the process of policy normalization.
The resultant Fed-BoJ policy divergence is another factor lending support to the USD/JPY pair.
Support levels - 141.07 (21-EMA), 137.88 (55-EMA)
Resistance levels - 144.96 (Sept 14th high), 146.27 (Upper BB)
Summary: USD/JPY finds support at 200H MA, downside remains limited. Focus on FOMC for impetus.
