USD/JPY Price Analysis: Subdued around 136.60s ahead of July Fed meeting

• The USD/JPY is trendless as investors await the Federal Reserve monetary policy decision.
• Sentiment remains downbeat, keeping FX majors in choppy trading ranges.
• USD/JPY Price Analysis: The USD/PY is upward biased, long term, but in the near-term is range-bound.

The USD/JPY is subdued during the North American session as investors brace for the Federal Reserve monetary policy decision, to be revealed on Wednesday, with traders expecting a 75 bps rate hike to the Federal funds rate. On Tuesday, the USD/JPY reached a daily low at 136.27. But the pair edged higher and hit a daily high around 136.84 before settling around 136.64 at the time of writing.

USD/JPY Price Analysis: Technical outlook

From a technical perspective, the USD/JPY in the long term is upward biased. Nevertheless, the sudden drop below the 20-day EMA at 136.85 keep sellers hopeful of driving prices further down towards the rising-wedge target profit at 133.50. On the other hand, if USD/JPY buyers achieve a daily close above 137.00, that would keep them in play for a re-test of the YTD high at 139.38.

USD/JPY 1-hour chart

The USD/JPY hourly chart depicts the major as neutral-to-upward biased. The Relative Strength Index (RSI) is seesawing around the 50-midline, portraying the previously mentioned, as traders prepare for the Fed. If the USD/JPY breaks to the upside, the first resistance would be the R1 daily pivot at 136.98. Break above will expose the 100-hour EMA at 137.16, followed by the R2 pivot point at 137.33. On the flip side, the USD/JPY first support would be the S1 pivot point at 136.08. Once cleared, the USD/JPY could tumble towards the confluence of the July 22 low and the S2 daily pivot at 135.57.

USD/JPY Key Technical Levels