The U.S dollar continues to trade above the 113.10 technical level against the Japanese yen, amidst increasingly tight range-bound conditions. The USDJPY pair yesterday found dip buying demand around the 113.20 region, and currently holds price-action above the 113.40 mark. Traders remain cautious ahead of the Federal Reserve interest rate decision, and the last scheduled monetary policy statement from outgoing Federal Chair Janet Yellen. Today’s main risk event for the USDJPY pair is the release of November PPI inflation figures, from the United States economy.
The USDJPY pair buyers retain control while price-action trades above the 113.10 technical level. Upside targets for the pair remain 113.69 and 114.
Should price-action on the USDJPY pair decline below the 113.10 support level, further selling towards 112.71 support level is then expected.