USD/JPY chart - Trading View
Spot Analysis:
USD/JPY was trading 0.10% lower on the day at 108.80 at around 05:15 GMT.
Previous Week's High/Low: 109.50/ 108.57
Fundamental Overview:
US dollar trades subdued amid a lack of strong catalysts, as rising inflation fears on prospects of global economic recovery keep investors on the sidelines.
Trade remains subdued in the Asian session on Monday amid the fears of Fed tapering and China’s moves to tame commodity price speculations.
China’s state planner National Development and Reform Commission (NDRC) held talks with commodity companies to, “severely punish commodity monopolies”.
MSCI’s index of Asia-Pacific shares outside Japan drops 0.14% intraday whereas Japan’s Nikkei 225 trims day’s gains to 0.40% at the time of writing.
Technical Analysis:
- USD/JPY price action was rangebound around 200-week MA
- Momentum studies are bearish, Stochs and RSI are sharply lower
- Minor recovery attempts remains capped below 109 handle
- MACD and ADX support downside, but weakness is likely to be limited at 108 handle
Major Support and Resistance Levels:
Support - 108.50 (55-EMA), 108.41 (Lower BB), 108
Resistance - 108.98 (23.6% Fib), 109.13 (200H MA), 109.60 (Upper BB)
Summary: USD/JPY rangebound at trendline support. Uncertainty over the Fed’s next move keeps the markets on edge even as the recently flashed activity numbers assured economic recovery from the pandemic.
