USDJPY HOLDING ABOVE 110 BUT STILL UNABLE TO CLOSE ABOVE THE H1 200 MOVING AVERAGE

Subdued trading action in the European session has seen the USDJPY trading in tight 30 pip range, between the 110 and 110.30 levels, with the pair still unable to close above the H1 200 DMA, currently located at 110.25.  

The USDJPY has two main risk events this week, with the FOMC interest rate decision on Wednesday, and the Bank of Japan monetary policy announcement during the Asian session on Thursday.

Short-term trading indicators suggest the USDJPY retains a neutral bias, with the pair trading above the 110 level, but critically still unable to make a meaningful close above the H1 time frame 200 period moving average at 110.25.

A move below the 110 level should see the pair test nearby support at 109.89, with further support located at yesterday's trading low at 109.63.

To the upside, a move above the current weekly high at 110.33 should see the pair move towards the former swing high at 110.43, with strong intraday resistance located at the daily 20 period average at 110.77.