USD/JPY stays directionless below 113 as markets look for catalyst
|- US Dollar Index stays in red below 96.50 on Monday.
- BoJ's Kuroda says they are determined to continue easing policy.
- New York President Williams to speak later.
The USD/JPY pair is trading in a tight range on Monday and struggles to find direction in the absence of significant fundamental drivers. As of writing, the pair was virtually unchanged on the day at 112.80.
Earlier today, Bank of Japan Governor Kuroda said that their loose monetary policy has helped Japan's economy recover since 2013 and added that they were determined to continue the current easing policy. "The BoJ's easing will eventually bring inflation to goal," Kuroda added.
On the other hand, the greenback, which suffered losses against its rivals on Friday after Fed officials voiced their concerns over the global economic slowdown on the U.S. economy and potentially on the policy outlook, started the week in a quiet manner. As markets wait for New York Fed President Williams' speech later in the session, the index loses 0.08% on the day at 96.35. Furthermore, investors will watch Wall Street's performance trying to determine the risk perception in the second half of the day.
Technical levels to consider
The initial resistance for the pair aligns at 113.00 (50-DMA/psychological level) ahead of 113.60 (Nov. 16 high) and 114.00 (Nov. 14 high). On the downside, supports are located at 112.60 (daily low), 112.10 (100-DMA) and 111.60 (Oct. 15 low).
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