USD/JPY remains confined in a range below mid-105.00s, hangs near 2-week lows

USD/JPY was seen oscillating in a range and consolidated its recent fall to over two-week lows.
Investors seemed reluctant to place any aggressive bets ahead of the key central bank events.

Haresh Menghani FXStreet

The USD/JPY pair lacked any firm directional bias and seesawed between tepid gains/minor losses, below mid-105.00s through the first half of the trading action on Wednesday.

The pair was seen consolidating its recent sharp fall to over two-week lows as investors now seemed reluctant to place any aggressive bets ahead of the key central bank events. The downside remains cushioned amid the latest optimism over a potential vaccine for the highly contagious coronavirus disease, which remained supportive of the upbeat market mood and undermined the safe-haven Japanese yen.

On the other hand, the US dollar bulls remained on the defensive and failed to provide any meaningful impetus to the USD/JPY pair. Wednesday's key focus will remain on the highly anticipated FOMC monetary policy decision, due to be announced later during the US trading session. The US central bank is expected to maintain its stance and reiterate tolerance for above-target inflation for some time to support the economy.

Meanwhile, the Bank of Japan is also scheduled to announce its policy decision on Thursday, which will further play a key role in determining the USD/JPY pair's next leg of a directional move. In the meantime, Wednesday's release of the US Monthly Retail Sales figures will influence the USD price dynamics and produce some short-term trading opportunities later during the early North American session.

Technical levels to watch

USD/JPY

Overview
Today last price	105.34
Today Daily Change	-0.10
Today Daily Change %	-0.09
Today daily open	105.44

Trends
Daily SMA20	106.02
Daily SMA50	106.22
Daily SMA100	106.81
Daily SMA200	107.81

Levels
Previous Daily High	105.82
Previous Daily Low	105.3
Previous Weekly High	106.38
Previous Weekly Low	105.79
Previous Monthly High	107.05
Previous Monthly Low	105.1
Daily Fibonacci 38.2%	105.5
Daily Fibonacci 61.8%	105.62
Daily Pivot Point S1	105.22
Daily Pivot Point S2	105.01
Daily Pivot Point S3	104.71
Daily Pivot Point R1	105.74
Daily Pivot Point R2	106.03
Daily Pivot Point R3	106.25

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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