FXStreet (Mumbai) – The USD/JPY pair is trading dead flat around 123.40 levels in the Asian session on Wednesday as investors ignored Japanese trade data and remain on the sidelines ahead of the FOMC statement.
USD/JPY – Stuck at hourly 50-MA
The upside in the pair is being capped at the hourly 50-MA located at 123.44 levels, after the Japanese trade deficit narrowed to JPY 216 billion, slightly narrower than the JPY 226 billion seen. This was a second straight deficit after a deficit of JPY 53 billion in April.
Market participants now await the outcome of the Fed’s latest policy meeting for a clear signal on when it could start to raise interest rates. In the meantime, the Greek issue could continue to support the Japanese Yen.
USD/JPY Technical Levels
The pair currently trades at 123.42. The immediate resistance is located at 123.44 (hourly 50-MA), above which gains could be extended to 123.77. On the flip side, a break below 123.12 could drive the pair lower to 122.44.
(Market News Provided by FXstreet)