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    USD/JPY: Upside capped by 106.30, awaits Fed verdict Dhwani Mehta

    The USD/JPY pair revisited daily highs over the last hour, although failed to sustain at higher levels and retreated sharply in tandem with the US dollar index amid easing risk-on trades.USD/JPY capped by 106.30The broad based US dollar correction weighed on the USD/JPY pair, sending the rate lower towards 106 handle. The Japanese stocks halted the rebound and trimmed gains, which rescued the JPY bulls somewhat and therefore, dragged USD/JPY from session tops.At the time of writing, USD/JPY trades 0.04% at 106.14, while the Japanese benchmark, Nikkei 225 trades 0.45% versus 0.73% seen earlier.The major is expected to trade in a flat-lining in the day ahead, as investors remains cautious and refrain from placing any directional bet ahead of the crucial monetary policy decisions by the Fed and BOJ.USD/JPY Technical levels to watchIn terms of technicals , the immediate resistance is located at 106.41/42 (5-DMA/ Jun 14 high). A break above the last, the major could test 106.77 (10-DMA). While to the downside, the immediate support is seen at 105.75 (Jun 13 low) and below that at 105.52/50 (May 3 low/ psychological levels).

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