USD/JPY: sitting above a robust 4-hr 10 SMA at 113.49

• USD/JPY awaits FOMC and CPI data.
• USD/JPY perched in consolidation at the high-end of the 113 handle. 

USD/JPY has been consolidating the bid and recovery from 27th Nov lows down at 110.84 having met a high of 113.75 in overnight trade. In Tokyo, USD/JPY was trading at 113.51, up 0.01% on the Asian day, having posted a daily high at 113.59 and low at 113.49.

FOMC meeting preview: big noise, little substance?

Overnight relative action

US rates, in the ten years up to around 2bps to 2.41% and in the middle of the range of between 2.37 - 2.42%. Wall Street higher as well with the DJIA printing a new record on the back of financials. The DXY was closing at the higher end of the range for Tuesday, between 93.7590 - 94.2190, ending at 94.068 for the day, +0.22%. However, the yen was picking up a safe haven bid with Wall Street looking toppy with new records set albeit lacking conviction, trading vs the greenback between 113.37 the low and 13.73, handing over to early Asia at 113.50.

USD/JPY levels

Valeria Bednarik, chief analyst at FXStreet explained that in the 4 hours chart, the price is well above its 100 and 200 SMAs, both lacking directional strength. "The Momentum indicator hovers around its mid-line and the RSI consolidates near overbought readings, rather reflecting this week's range than suggesting exhaustion upward," Valeria added.