FxWirePro: USD/JPY rangebound around 5-DMA, focus on FOMC meeting for impetus

Chart - Courtesy Trading View 

Spot Analysis:

USD/JPY was trading largely unchanged at 143.44 at around 07:45 GMT, outlook remains bearish.

Previous Week's High/ Low: 144.99/ 140.09

Previous Session's High/ Low: 143.80/ 142.79

Fundamental Overview:

Stronger US CPI report released on Tuesday lifted bets for a more aggressive policy tightening by the Fed, which continues to underpin the greenback.

Caution prevails ahead of the upcoming FOMC meeting on September 20-21, for which the markets are pricing in the possibility of a full 100 bps rate hike.

Bank of Japan, on the other side, has been lagging behind other major central banks in the process of policy normalization.

The resultant Fed-BoJ policy divergence is another factor lending some support to the USD/JPY pair.

Technical Analysis:

- USD/JPY extends range trade around 5-DMA, holds above 200H MA support

- MACD is on verge of bearish crossover on signal line, ADX supports weakness

- Bearish RSI divergence adds to the downside bias

- GMMA indicator shows major and minor trend are neutral on the intraday charts

Major Support and Resistance Levels:

Support - 143.22 (200H MA), 140.86 (21-EMA)

Resistance - 145.86 (Trendline), 146.08 (Upper BB)

Summary: USD/JPY pivotal at 200H MA, break below will drag the pair lower. Major trend is bullish, trend reversal only below 21-EMA.