USD/JPY searching for some lift from 111.00
|- The Greenback is finding some limited pickup against the Japanese Yen in early trading.
- US inflation figures due at the end of the week will be the key for the week's action.
The USD/JPY is trading into 111.30 as Monday's Asian market session begins to wrap it up, and the US Dollar is seeing some mild lift from recent lows near the 111.00 technical level, and the economic calendar is slated to be a series of mid- and low-tier showings for the Dollar-Yen pairing until Friday's US CPI reading, a long way off as market sentiment decides which way to head for the new week.
Monday's watered-down calendar has little meaningful data to encourage volatility into the markets for the early week, though late in the day will be seeing Japan's y/y Overall Household Spending for July at 23:30 GMT, and is expected to come in at -1.6%, a disappointing showing but expected to improve over the previous reading of -3.9%.
Last week's Bank of Japan (BoJ) showing represented a significant re-dedication to easy monetary policy by Japan's central bank, and the BoJ reaffirmed that it is still miles off from engaging in any kind of tapering or easing off of the monetary policy pedal, though the BoJ did widen the barriers on Japan's 10-year government bonds, while also warning markets about the bank's intent to begin shifting some ETF purchases from the Nikkei 225 to the Tokyo Topix index, since the BoJ now owns a sizeable portion of Japan's leading index after years of hyper-easy policy and asset purchases.
USD/JPY Technical Analysis
The Dollar-Yen pairing is currently pulling back from a recent swing low at the tail-end of last week's action, though bullish action is likely to remain subdued as the USD/JPY remains off of one-month highs with US CPI figures due at the end of the week, and USD traders will be keeping an eye turned towards the next round of US inflation figures.
USD/JPY Chart, 15-Minute
| Spot rate: | 111.34 |
| Relative change: | 0.12% |
| High: | 111.35 |
| Low: | 111.12 |
| Trend: | Bullish pullback |
| Support 1: | 111.49 (38.2% Fibo retracement level) |
| Support 2: | 111.85 (Friday swing high) |
| Support 3: | 112.14 (previous week high) |
| Resistance 1: | 111.12 (current day low) |
| Resistance 2: | 110.73 (previous week low) |
| Resistance 3: | 1110.58 (July 26th low) |
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