USD/JPY confined in a narrow range below 115.00 handle, awaits Fed

The USD/JPY pair extended its consolidative price-action within a narrow trading band below the key 115.00 mark as investors await the outcome of highly anticipated FOMC meeting. 

The Fed is widely expected to hike interest rates at the end of a two-day meeting on Wednesday. Although the move has already been priced-in by the markets, investors await for additional clarity on central bank's future monetary policy outlook. 

A shift in the Fed’s so-called dot plot should spur a fresh bout of volatility in the FX market and hence, market participants opt to wait-and-see before committing to the pair's near-term trajectory, resulting into a subdued, range-bounce price action around the major. 

Meanwhile, investors will also look forward to the BoJ monetary policy announcement during early Asian session on Thursday, which along with the FOMC outcome would help determine the pair's next leg of directional move.

On the economic data front, the latest CPI print, monthly retail sales and Empire State manufacturing index from the US might help traders to grab some short-term opportunities during early NA session.

Technical levels to watch

Immediate support is pegged near mid-114.00s (yesterday's low), below which the pair is likely to accelerate the slide towards 50-day SMA support near the 114.00 handle ahead of 113.70-65 horizontal support.

On the upside, bulls would be eyeing for a move above the 115.00 handle, which if conquered has the potential to lift the pair beyond mid-115.00s (March 10 high) towards 115.80 resistance before aiming to reclaim 116.00 round figure mark.