USD/JPY chart - Trading View
USD/JPY was trading 0.10% higher on the day at 113.59 at around 08:55 GMT.
The pair has failed to extend early gains, recovery lacks traction, 5-DMA caps upside.
US dollar remains under pressure after U.S. Federal Reserve Chairman Jerome Powell said on Friday that asset tapering should begin soon.
US 10-year Treasury yields was slightly up to 1.657%, consolidating previous session's slump. While, DXY extended downside to test fresh monthly lows at 93.48.
Risk-on mood amid US stimulus hopes and Evergrande-led relief in China adding to downside pressure on the pair.
Major focus will be on Thursday’s US GDP data. Upbeat numbers could provide extra support to the DXY.
Technical indicators show some near-term weakness in the pair. Price action has slipped below 200H MA and 5-DMA has turned.
Stochs and RSI are showing a bearish rollover from overbought levels. Dip till 21-EMA at 112.80 likely.
