FxWirePro: USD/JPY holds marginal gains ahead of Fed policy meet

USD/JPY chart - Trading View 

USD/JPY was trading marginally higher at 109.13 at around 05:30 GMT, bulls hold-off from placing aggressive bets ahead of FOMC meet.

USD bulls ignore Tuesday's disappointing US monthly Retail Sales data, find support from elevated US Treasury bond yields.

Prospects for a relatively faster US economic recovery continued underpinning the US dollar.

Upbeat US economic outlook fuels speculations for a possible uptick in inflation, raising doubts that the Fed would retain ultra-low interest rates for a longer period.

At today's Federal Reserve meeting analysts expect the central bank to leave policy unchanged and acknowledge better conditions.

The bank's interest rate projections will be watched closely. Any stray dots may trigger knee-jerk market movements.

Indicators are bullishly aligned. Price action is consolidating above 200W MA. Retrace below could see some weakness.

Resistance on the upside lie at 109.56 (76.4% Fib), 110 (psychological mark) and 110.67 (88.6% Fib).