USD/JPY flat-lined ahead of the much awaited Fed decision

The USD/JPY pair traded in a narrow band and was little changed on Wednesday as investors opt to wait-and-watch ahead of the key event risk. 

Currently trading around 115.15 region, the pair extended its consolidative move and lacked a firm direction heading into the much anticipated Fed monetary policy decision. The central bank is widely expected to lift the federal-funds target range by 25 bps points to between 0.5% and 0.75%. Market participants, however, will be looking for fresh insights over the central bank's monetary policy outlook for 2017 from the accompanying monetary policy statement. With markets expecting accelerating US economic growth, in wake of aggressive fiscal policies by Trump administration, hints of faster two rate-hikes should assist the pair to continue with its recent bullish trajectory.

Meanwhile, US economic docket, featuring the release of monthly retail sales and PPI print, later during NA session, might provide some trading opportunities for short-term traders. Meanwhile, the broader trend would remain dependent on the FOMC rate-decision and hence, might overshadow the effect of today's economic releases. 

Technical levels to watch

Immediate resistance on the upside is pegged at 115.50 region above which the pair is likely to make a fresh attempt to conquer 116.00 handle and aim towards its next resistance near 116.60-65 region. On the downside, sustained weakness below 115.00 handle, leading to a subsequent drop below 114.75 (yesterday's low), is likely to trigger a fresh wave of corrective slide towards 114.00 handle ahead of an important support near 113.25-20 region.

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