FxWirePro: USD/JPY struggles for direction ahead of BoJ policy meeting, 200-DMA offers strong support

Chart - Courtesy Trading View 

Spot Analysis:

USD/JPY was trading 0.04% lower on the day at 136.58 at around 13:50 GMT.

Previous Week's High/ Low: 138.17/ 134.50

Previous Session's High/ Low: 137.80/ 136.29

Fundamental Overview:

Reports over the weekend showed Japanese government could revise the Bank of Japan's 2% inflation target and make it more flexible. 

The revision could allow the BoJ to tweak its ultra-loose policy stance, which could benefit the JPY.

Amid lack of any major economic releases from the US, bond yields will play a key role in influencing the USD price dynamics. 

Further, the broader risk sentiment could drive demand for the safe-haven greenback providing short-term trading opportunities.

Technical Analysis:

- USD/JPY bounces off 200-DMA support

- MACD supports upside in the pair

- Momentum is bullish, stocks are biased higher

- GMMA indicator shows major and minor trend are bearish

Major Support and Resistance Levels:

Support - 135.63 (200-DMA), Resistance - 137.89 (21-EMA)

Summary: USD/JPY finds major support at 200-DMA. Break below will drag the pair lower. Next major support lies at 55-week EMA at 131.87.