The USDJPY continues to trade in an increasingly tight trading range on Wednesday, with the pair largely unchanged from Tuesday even after the FOMC Meeting Minutes and a sharp drop in the U.S dollar index.
Trading sentiment surrounding the USDJPY pair today remains neutral until a range-break is confirmed. Traders will look to U.S economic data later today, U.S equities and headlines from the upcoming Japanese elections.
Following the release of the FOMC Meeting Minutes the USDJPY dropped towards the 112.08, but later recovered towards the 112.57 level.
At present, the pair is creating an increasingly narrow trading range within a 50-pip band, with price-action making higher price-lows and lower price highs.
Key intraday USDJPY technical support is located at 112.25 and the recent swing price-low, at 112.08. Further support is seen at 111.98 and the key 200-week moving average, located at the 111.69 level.
To the upside, key intraday technical resistance is found at the USDJPY daily pivot point, at 112.39, and the recent swing price-high, at 112.57. Further intraday resistance is seen at the 112.83, 113.25 and the Non-farm payrolls spike high, at 113.43.