USD/JPY challenges highs near 113.50, FOMC on sight

The Japanese currency is giving away part of the recent gains vs. its American counterpart, lifting USD/JPY to the upper bound of the range near 113.50.

USD/JPY attention on FOMC

JPY has surrendered some its Tuesday’s gains following the steady stance by the BoJ at its meeting, allowing spot to bounce off the 112.60 area against the backdrop of a better sentiment in the risk-associated space.

Next of relevance for the pair will be the release of US inflation figures tracked by the CPI for the month of February, followed by the critical FOMC gathering. Markets bets see the Fed refraining from hiking rates at this meeting, although it could deliver a cautious/hawkish tone.

USD/JPY levels to watch

As of writing the pair is advancing 0.18% at 113.37 and a break above 114.56 (high Mar.3) would aim for 114.89 (high Feb.16) and then 115.09 (38.2% Fibo of 121.70-110.98). On the flip side, the immediate support aligns at 112.14 (low Mar.1) followed by 110.98 (low Feb.11) and finally 105.18 (monthly low Oct.2014).

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