Chart - Courtesy Trading View
Spot Analysis:
USD/JPY was trading 0.04% lower on the day at 136.58 at around 13:50 GMT.
Previous Week's High/ Low: 138.17/ 134.50
Previous Session's High/ Low: 137.80/ 136.29
Fundamental Overview:
Reports over the weekend showed Japanese government could revise the Bank of Japan's 2% inflation target and make it more flexible.
The revision could allow the BoJ to tweak its ultra-loose policy stance, which could benefit the JPY.
Amid lack of any major economic releases from the US, bond yields will play a key role in influencing the USD price dynamics.
Further, the broader risk sentiment could drive demand for the safe-haven greenback providing short-term trading opportunities.
Technical Analysis:
- USD/JPY bounces off 200-DMA support
- MACD supports upside in the pair
- Momentum is bullish, stocks are biased higher
- GMMA indicator shows major and minor trend are bearish
Major Support and Resistance Levels:
Support - 135.63 (200-DMA), Resistance - 137.89 (21-EMA)
Summary: USD/JPY finds major support at 200-DMA. Break below will drag the pair lower. Next major support lies at 55-week EMA at 131.87.


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