- USD/JPY bounced back from 2-week lows at 110.75 to close above the 111 handle on Monday's trade.
- Markets now look past BoJ noise and believe that the central bank will not be tweaking their monetary policy as soon as next week.
- If the BOJ does tweak its monetary policy when they meet on July 30 (Mon), 31 (Tues) yen could see a further uproar.
- Also, a pickup in the US bond yields helped ease bearish pressure on the greenback.
- The major is trading in a narrow range and is struggling to hold gains above 21-EMA.
- Technical bias on daily charts slightly in favour of bears. Decisive break above 21-EMA could invalidate the bearish bias.
- Focus now on this week's US PMI and GDP data for further impetus.
Support levels - 110.50 (55-EMA), 110.10 (200-DMA), 109.90 (cloud and 38.2% Fib)
Resistance levels - 111.40 (21-EMA), 111.87 (5-DMA), 112
FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at -34.6178 (Neutral), while Hourly JPY Spot Index was at 56.4229 (Neutral) at 0410 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
