The USDJPY currency pair is currently fluctuating within a small trading range near the 147.75 level, reflecting a sense of caution in the market.

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• USD/JPY oscillates in a narrow trading band near 147.75 amid the cautious mood.

The pair currently trades last at 147.754.

The previous day high was 147.92 while the previous day low was 147.51. The daily 38.2% Fib levels comes at 147.76, expected to provide resistance. Similarly, the daily 61.8% fib level is at 147.67, expected to provide support.

The USD/JPY pair remains confined in a range during the early Asian session on Wednesday. Traders prefer to wait on the sidelines ahead of the Federal Reserve (Fed) interest rate decision on Wednesday, which Fed is expected to keep rates unchanged at the 5.25%-5.50% range. The pair currently trades near 147.75, down 0.08% on the day.

The latest data from Japan’s Ministry of Finance showed on Wednesday that the nation’s Balance of Trade for August came in at ¥-930.5B, worse than the expectation of ¥-659.1 B. Meanwhile, Exports came in at -0.8% YoY versus -0.3% prior, better than expected at -1.7%. Imports improved to -17.8% from -13.6%, beating the estimation of -19.4%.

Early Wednesday, Japan’s top currency diplomat Masato Kanda came out with verbal intervention remarks. Kanda stated that Japanese authorities are dealing appropriately with FX moves with a high sense of urgency.

Furthermore, the Bank of Japan (BoJ) will announce an interest rate decision on Friday. The BOJ is largely anticipated to maintain its short-term interest rate target of -0.1% and its 10-year bond yield target of around 0%. Markets are waiting to see whether Governor Kazuo Ueda would provide any new signals about the timing of a policy move and additional tweaking to its Yield Curve Control (YCC) at his press conference after the meeting.

Across the pond, the Federal Reserve (Fed) is scheduled to announce the two-day monetary policy meeting on Wednesday and is widely expected to hold the interest rates in the 5.25% to 5.5% range. This, in turn, might exert some selling pressure on the Greenback (USD) and act as a headwind for the USD/JPY pair. About the data, the US housing industry showed mixed results in August. The US Census Bureau revealed on Tuesday that US Housing Starts fell 11.3% while building permits surged 6.9%.

Moving on, traders will keep an eye on the Fed meeting decision on Wednesday at 18:00 GMT. On Friday, BoJ will announce its monetary policy decision. These events could trigger the volatility in the market and could give a clear direction to the USD/JPY pair.

Technical Levels: Supports and Resistances

USDJPY currently trading at 147.76 at the time of writing. Pair opened at 147.86 and is trading with a change of -0.07 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 146.82, 50 SMA 144.15, 100 SMA @ 142.03 and 200 SMA @ 137.46.

The previous day high was 147.92 while the previous day low was 147.51. The daily 38.2% Fib levels comes at 147.76, expected to provide resistance. Similarly, the daily 61.8% fib level is at 147.67, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 147.61, 147.35, 147.19
• Pivot resistance is noted at 148.02, 148.18, 148.43

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