- USD/JPY is trading an extremely narrow range, intraday bias remains neutral.
- The pair has closed the bearish gap open in early Asian trade, but upside lacks traction.
- 200-DMA at 110.36 is stiff resistance and the pair failed to close above on Friday's trade.
- Technical indicators are not conclusive, RSI flat-lined below 50 levels and MACD still bias lower.
- FOMC later this week along with U.S. retail sales and CPI data could provide direction.
- Market have largely priced in a rate hike from the Fed, the statement will be key for driving market sentiment.
Support levels - 110, 109.96 (5-DMA), 109.25 (trendline)
Resistance levels - 110.36 (200-DMA), 110.61 (23.6% Fib of 118.662 to 108.130 fall), 110.96 (20-DMA)
Recommendation: We prefer to wait for clear directional bias
