USD/JPY lost around 100 pips from its Friday’s close, as the G20 meeting that took place in Shanghai during the weekend, failed to boost market sentiment.
The Group committed to go beyond easy-money monetary policy to pursue structural reforms in their respective countries to strengthen the global economy, but as usual, no actual decision was made.
The pair’s decline stalled during the American afternoon, as local share markets turned positive, but poor US data maintained the upside limited. At time of writing, USD/JPY is trading at 112.89, 0.91% below its opening price.
USD/JPY technical perspective
“From a technical point of view, the 1 hour chart shows that the price is struggling around the 200 SMA, while the 100 SMA heads slightly higher around 112.55, providing an immediate intraday support,” said Valeria Bednarik, chief analyst at FXStreet. “In the same chart, the Momentum indicator aims higher, but remains below its 100 level, while the RSI indicator resumed its decline around 43, in line with further declines. In the 4 hours chart, the price retreated from a bearish 100 SMA, while the Momentum indicator heads south and nears its 100 level, and the RSI stand flat around 50.”
Support levels: 112.45 112.00 111.65. Resistance levels: 113.20 113.70 114.10.