• USD/JPY bounces off intraday low, prints lackluster day after mild daily losses.
• Cautious mood ahead of the Fed verdict, concerns over US stimulus probe sentiment.
• Japan banks are off due to Culture Day, US ADP Employment Change, PMIs can offer intermediate moves.

USD/JPY remains sidelined after a negative day, keeping the bounce off the intraday low of 113.90 near 114.00 during Wednesday’s Asian session. The yen pair portrays the market’s cautious mood ahead of the US Federal Reserve (Fed) policy decision but a bank holiday at home and light calendar elsewhere challenges the momentum of late.

In addition to the tapering tantrums, chatters surrounding US stimulus also weigh on the market’s mood. In contrast to the previous hopes of getting the deal done during this week, US Senator Joe Manchin said, per the CNN, to have chief concerns that will need to be addressed in order to secure his vote for the $1.75 trillion economic package. The policymaker was cited expressing new optimism that a deal could ultimately be reached that would win his support on President Joe Biden's domestic agenda before Thanksgiving.

Elsewhere, a rebound in the US Treasury yields and inflation expectations ahead of the key Fed decision also challenged the USD/JPY traders. Additionally, the re-election of Japan’s Fumio Kishida as the Prime Minister reduces challenges for the Bank of Japan (BOJ) and hence the pair traders convey fears of any reduction in the easy money amid the recently firmer price pressure into the economy.

Amid these plays, US Treasury yields rebound whereas the S&P 500 Futures print mild losses by the press time.

Moving on, US ADP Employment Change for October and ISM Services PMI for October may offer intermediate moves to the USD/JPY prices ahead of the key Fed decision with the market players aiming for a $15.00 billion tapering.

Technical analysis

USD/JPY seesaws inside a three-week-old symmetrical triangle between 113.35 and 114.40 amid bearish MACD signals, which in turn keeps the bears hopeful. That said, 21-DMA near 113.60 offers immediate support to the pair.