FxWirePro: USD/JPY rangebound; US-China trade worries, Fed pause risks underpin safe-haven yen

USD/JPY chart on Trading View used for analysis

• USD/JPY is trading in a narrow range, as markets await FOMC decision due later today.
   
• The US central bank is expected to keep rates and confirm that it is on a wait and watch mode.
   
• US-China trade worries, Fed pause risks underpin safe-haven yen. Also, Japan's retail sales beat forecasts by a big margin, supporting the JPY.
   
• Japanese retail sales jumped 1.3 percent y/y in Dec, beating the estimated figure of 0.8 percent, but down slightly from the previous month's print of 1.4 percent. 
   
• The seasonally adjusted m/m reading rose 0.9 percent following a 1.1 percent drop in November.
   
• The pair trades with a neutral to slightly bearish bias. break below strong support at 20-DMA could see further weakness.
   
• On the flipside, 21-EMA is immediate resistance. Decisive break above could see some upside.

Support levels - 108.97 (20-DMA), 108.41 (61.8% Fib)

Resistance levels - 109.56 (21-EMA), 110 (Jan 23 high)

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