FxWirePro: USD/JPY trades directionless above 200-DMA, focus on FOMC minutes for impetus

USD/JPY chart - Trading View 

USD/JPY was trading in narrow ranges in the Asian session today as markets await minutes from the unscheduled FOMC meeting on 15 March.

The major was trading 0.10% higher on the day at 108.84 at around 03:55 GMT, bias neutral.

The pair is struggling for a firm direction amid widespread risk-on as fresh figures from the US, Spain and the UK renewed fears of the deadly disease on late-Tuesday.

February month Machinery Orders data was released in Japan earlier today. Yen muted after core machinery orders, current account data.

Japan’s core machinery orders stood at 2.3 vs 2.9 previous release (expected -2.9). While the current account came in at 2.38T vs 1.63T previous release (expected 2.02T).

Also, Japan’s Prime Minister Abe has declared a state of emergency in Tokyo and six other provinces and plans to combat the economic fallout of COVID-19 with a huge fiscal stimulus package.

The pair trades with a neutral bias, but holds above 200-DMA. 5-DMA is biased higher and RSI is also above 50 mark. 

Scope for upside remains as long as pair holds above 200-DMA. Next major resistance align at 109.53 (daily cloud) and 110.29 (Jan 17 high)

Retrace below 200-DMA negates any bullish bias. Immediate support below 200-DMA align at 108.22 (200H MA) and 107.69 (38.2% Fib).