FxWirePro: USD/JPY trades rangebound, below 110 mark ahead of FOMC policy meet

USD/JPY chart - Trading View 

USD/JPY was trading 0.06% lower on the day at 109.95 at around 11:00 GMT.

Traders remains cautious as the focus remains on the FOMC policy decision later today.

A downtick in the US Treasury bond yields kept the US dollar bulls on the defensive across the board.

Concerns about rising inflationary pressure which were further fueled by Tuesday's hotter-than-expected US Producer Price Index raise prospects for an earlier stimulus withdrawal. 

Markets remains cautious ahead of FOMC monetary policy meeting. Investors will be closely watching for clues about a possible change in the policy outlook.

Focus will be on the Fed’s quarterly economic outlook, dot-plot and Chairman Jerome Powell’s speech. 

Major Support Levels: 

S1: 109.80 (5-DMA)

S2: 109.53 (21-EMA)

S3: 109.01 (55-EMA)

Major Resistance Levels: 

R1: 110.34 (Upper BB)

R2: 110.96 (Yearly high)

R3: 111 (Psychological mark)

Summary: USD/JPY is extending sideways grind for the 2nd straight session amid pre-Fed trading lull. Technical bias remains bullish. Expectations for a less dovish Fed keeps downside limited. Bullish invalidation only below 21-EMA.