USD/JPY is trading in narrow range, market eyes US GDP and FOMC meeting

• RES3 :120.08 (Apr 22^nd high)
  
  
• RES 3: 119.80 (200 day 4HMA)
  
  
• RES 2: 119.45 (Kijun-Sen)

• RES 1: 119.05 (20 day 4HMA)

PRICE: 118.83 @ 05:20 GMT 

• SUP 1: 118.50 (Apr 20^th low)

• SUP 2: 118.16 (61.8% retracement of 115.85 and 122.01)

• SUP 3 -116.85 (Feb 3^rd low)

• SUP4-115.85

COMMENTARY:

USD/JPY is trading in narrow range. Overall trend is neutral and any bullishness can be seen only above 120.06 level.

The market awaits US GDP data and FOMC meeting which is to be released today. US GDP growth which is expected to be at 1.1% compared to 2.2% (Q4 2014). The decline in GDP growth was mainly due to strong dollar, oil and weather. So FOMC is expected to maintain a cautious tone in its post meeting statement.

Short term bullish invalidation level-118.16. Any break below 118.16 will drag the pair further down till 116.85/115.90 in short term.

On the upside minor resistance is around 120.05 and any break above would extend gains till 120.81/121.18.

Indicator (4 hour chart)

CCI (50) - Sell

Woodies CCI (14) - Sell

Ichimoku- Sell

It is good to Sell on rallies around 119.35 for the target of 118.15 with stop around 119.85.