USD/JPY bulls eyeing 110.00 handle ahead of FOMC

• USD/JPY is nearing the 110.00 handle as market participants buy the greenback in anticipation of a hawkish Fed’s statement at 18:00 GMT.
• The Federal Reserve is expected to keep rates on hold and to indicate a rate hike in June.

The USD/JPY is trading at around 109.98 up 0.09% on Wednesday as market participants are awaiting the Fed's monetary policy statement at 18:00 GMT on Wednesday.

The greenback huge demand is led by expectations that the Federal Reserve Bank will keep its hawkish stance in its report released at 18:00 GMT on Wednesday. The rising US Treasury yields is a result of the hawkish monetary policy of the Fed as the US labor market is strong and inflation indicators suggest rising inflation. In the European session, the 10-year Treasury yields benchmark flirted with the 3% level to trade now lower towards the 2.96% region at the time of writing. 

Earlier in the day, the US ADP report, the forerunner of the more important Non-Farm Payroll scheduled on Friday, came above expectations at 204K versus 200K forecast by analysts. The news supports USD ahead of the key Fed's Monetary Policy Statement at 18:00 GMT on Wednesday.

On the other hand, the Japanese yen is weak as the Bank of Japan recently confirmed its loose monetary policy. 

The USD/JPY daily chart 

The USD/JPY is in a bullish trend. Resistances are seen at the 110.00 psychological figure and at the 110.84 swing low while supports are priced in at 108.96 and 108.54 swing lows.