USD/JPY technical analysis: Oscillates in a familiar trading range, FOMC eyed for fresh directional impetus

• The USD/JPY pair lacked any firm directional bias and seesawed between tepid gains/minor losses through the early European session on Wednesday.
• The pair remains well within a broader trading range held over the past one week or so, awaiting s fresh impetus from the FOMC monetary policy update.

Meanwhile, neutral technical indicators on hourly charts have been supportive of a firm intraday directional move, albeit bearish oscillators on the daily chart point to an extension of the recent bearish trajectory and additional weakness.  

However, given that the pair has repeatedly shown resilience below the 108.00 round figure mark, bearish traders are likely to wait for a strong follow-through selling below the mentioned handle before positioning for any further depreciating move.

On the upside, a short-term descending trend-line – extending from yearly tops set on April 24, is likely to act as an immediate strong resistance, which if cleared might negate the bearish set-up and prompt some aggressive short-covering move.

Above the mentioned barrier, the pair is likely to accelerate the recovery towards reclaiming the 109.00 handle before eventually darting to its next major hurdle near the 109.60 supply zone.

USD/JPY daily chart