FxWirePro: USD/JPY treads water as Fed meeting looms, major trend remains bearish

Chart - Courtesy Trading View 

USD/JPY was trading 0.15% higher on the day at 130.25 at around 05:25 GMT.

The major remains range bound below 21-EMA as caution prevails ahead of Fed policy decision.

Markets have priced in an interest rate hike and a potentially hawkish message from the central bank.

The Federal Reserve is widely expected to hike interest rates by 25 basis points, after U.S. inflation retreated over the past few months. 

Comments from Fed Chair Jerome Powell will be closely watched for further guidance, given that recent data signaled some resilience in the U.S. economy. 

On the other side, he Japanese yen was muted after data showed that the country’s manufacturing sector shrank further in January, following a weak reading on industrial activity on Tuesday.

Major Support Levels: 

S1: 129.95 (200H MA)

S2: 127.05 (21-week EMA)

Major Resistance Levels: 

R1: 130.57 (21-EMA)

R2: 131.40 (55-week EMA)

Summary: USD/JPY trades directionless below 21-EMA. Death Cross (bearish 50-DMA crossover on 200-DMA) keeps bearish bias.