FxWirePro: USD/JPY rangebound, caution prevails ahead of FOMC meeting

Chart - Courtesy Trading View 

Technical Analysis:

- USD/JPY was trading 0.07% higher on the day at 143.82 at around 04:20 GMT

- The pair is extending range trade around 5-DMA, outlook remains bullish

- GMMA indicator shows major and minor trend are strongly bullish

- Price action is above cloud and Chikou span is biased higher

Fundamental Overview:

Caution prevails ahead of FOMC policy meeting due later in the day.

Anticipation of an upcoming rate hike supporting the dollar, while concerns over slowing economic growth keep upside in check.

On the other side, Japanese authorities say they are now ready to intervene in currency markets at any moment, if needed.

Federal Reserve is set to hike interest rates while the Bank of Japan is expected to stand pat on rock-bottom rates. This policy divergence keeps bias higher.

Major Support Levels: 143.44 (5-DMA), 141.52 (21-EMA)

Major Resistance Levels: 145, 146.42 (Upper BB)

Summary: USD/JPY likely to extend range trade in the run up to FOMC meet. Technical bias remains bullish. Weakness only below 21-EMA.