FxWirePro: USD/JPY downside bias intact, U.S. dollar fades previous session's bounce ahead of FOMC interest rate decision

USD/JPY chart - Trading View 

USD/JPY was trading range bound on the day with session high at 105.24 and low at 104.95.

The major closed in the red, down 0.26% on Tuesday's trade as the U.S. dollar's bounce fizzled out. 

Price action hovers near four-month lows, as the bulls remain cautious amid the US fiscal deadlock and ahead of the Fed outcome. 

Renewed selling pressure in the U.S. dollar likely amid continued fears over rise in coronavirus infections along with expectations of a loose monetary policy from the Fed.

Adding pressure on the pair, Japan’s data beat the market’s expectations, with the June Corporate Service Price Index, which improved to 0.8% YoY from 0.5% in the previous month. 

Technical analysis supports further downside in the pair. Rising volatility and bearish momentum to see dip till 200 M MA at 103.95.

5-DMA is immediate resistance at 105.68. Decisive close above could see gains till 21-EMA. Bearish invalidation only above 200-DMA.