USD/JPY confined in a trading range around 102.00 mark

Having faced rejection near Friday's US CPI-led swing high around 102.40-45 region, the USD/JPY pair turned lower but has just managed to hold 102.00 handle. 

Currently trading around 102.15 region, the pair continued with its struggle for a firm direction as market participants remain divided over the possible next monetary policy move by the Bank of Japan. Moreover, traders seemed reluctant in building and carrying direction bets ahead of this week's key event risks, BOJ and the Fed monetary policy decision, which has eventually confined the pair within a broader trading range. 

Both the major central banks are scheduled to announce their monetary policy decision on Wednesday. With the Fed expected to hold its monetary policy unchanged, BOJ will grab all the market attention and is likely to be the key determinant of the pair's near-term direction. Until then, the pair might continue with its range-bound price action. 

Technical levels to watch

On the upside, 102.25-30 area remains immediate resistance above which the pair is likely to aim towards 50-day SMA resistance near 102.65-70 region before making a fresh attempt to reclaim 103.00 handle. On the flip side, sustained weakness back below 102.00 handle, and a subsequent drop below 101.80-75 support, is likely to turn the pair vulnerable to head back towards 101.55 support ahead of the trading range support near 101.20 level.