USD/JPY meanders near low

FXStreet (Mumbai) - The US dollar fell back in red versus the Japanese yen in the early European morning, sending USD/JPY near session lows below 119 handle, with nervousness rising ahead of the FOMC meeting, which concludes on Wednesday, along with the Bank of Japan's (BOJ) meeting on Thursday.

USD/JPY wavers circa 119

Currently, the USD/JPY pair trades muted at 118.99, hovering around fresh session lows at 118.96 levels. The offered tone in the USD/JPY pair remains intact with the US dollar resuming its downside momentum from the previous session while traders remain wary ahead of Wednesday’s FOMC decision.

The major remains subdued despite a minor rebound seen in the shorter and longer duration US treasury yields which may eventually lift the US dollar higher. The Fed should confirm the neutral stance and keep the "data-dependent" language, while traders are under pricing September's rate hike.

Meanwhile, markets now turn their focus towards US consumer confidence numbers due later in the day and Wednesday’s FOMC statement for further momentum on the major.

USD/JPY Technical Levels

To the upside, the next resistance is located at 119.44 (April 27 High) levels and above which it could extend gains 119.67 (April 24 High) levels. To the downside immediate support might be located at 118.75 (April 27 Low) below that at 118.51 (April 20 Low) levels.

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