The USDJPY is still treading water with failed attempts below trend lines above and below for the pair (see chart below).

Yesterday, the main move was down, with a correction into the close. In the process, the pair failed on the look above the topside trend line early in the day, and then on the break of the lower trend line later. The lower and upper trend lines are just one step in moves for the pair. The most recent lows and highs are the other targets to either get below or above, and action this week, has not been able to make a run to and through those levels (focus on the red box). So we get the reactionary reversals after the momentum slows.

USDJPY remains in the confined area.

USDJPY remains in the confined area.

The FOMC decision later today may shake the pair out of its range (or be the catalyst for the move going forward). I would think that how the Fed goes, so too does the USDJPY. If the Fed is more bullish on the economy (or keeps the mid year tightening bias), then we should see a more bullish USDJPY. If they soften with statement with risk fears, a bearish move is then more likely.

What we know from the charts is that the pair is mired in this up and down consolidation with the wide extremes at 116.92-117.17 below and 118.85 above. In between, the 100 and 200 hour MAs can be used as the wide line in the sand (after the release). They come in at 117.90 and 118.04 respectively and getting closer together by the hour. When the two moving averages converge and are going sideways, it is indicative of non trending market. Non trending transitions to trending. Traders simply like movement. So we may be getting closer to the next push for the pair. The reason or catalyst will be found.

The daily chart has the price above the 38.2% retracement. The price did break below trend line support so needless to say it too is mixed technically.

USDJPY daily chart consolidates.

USDJPY daily chart consolidates.