FxWirePro: USD/JPY rangebound below 110-EMA, hawkish Fed expectations to limit downside

Chart - Courtesy Trading View 

USD/JPY was trading 0.07% lower on the day at 134.03 at around 07:45 GMT, extends sideways for the 3rd consecutive session.

The major lacks any firm directional bias, continues to trade in a narrow range as FOMC minutes awaited for impetus.

Improving risk-on as investors ignore US-China tensions and North Korea’s missile attacks near Japan’s Exclusive Economic Zone (EEZ) region dent demand for dollar.

Focus now on the release of the Federal Open Market Committee (FOMC) minutes, which will release on Wednesday. 

The market participants will keenly watch for the inflation projections and cues related to March’s monetary policy.

Underlying bullish sentiment surrounding the US Dollar, bolstered by the prospects for further policy tightening by the Fed keep downside limited.

On the other side, investors also await Friday's testimony from the newly nominated Bank of Japan (BoJ) Governor Kazuo Ueda for his view on the future of yield curve control (YCC) and super-easy monetary policy. 

Support levels:

S1: 133.87 (5-DMA)

S2: 133.14 (55-EMA)

Resistance levels:

R1: 134.84 (110-EMA)

R2: 136.92 (200-DMA)

Summary: Technical bias for the pair is bullish. Watch out for break above 110-EMA for further gains. Next major bull target lies at 200-DMA.