USD/JPY (a 4-hour chart)
The yen was neutral on Monday despite the strong Tankan release. Markets ignored the report, awaiting for the U.S. Manufacturing PMI later this day.
The USD/JPY pair remained neutral on Monday. The dollar looked firm against the yen. The price traded in a narrow range between 101.10 – 101.60 during the European trade hours. The pair started a consolidation phase after a strong rebound from the 3-month support line – 100.06. The USD/JPY was sandwiched between the 100 and 200 EMAs which provide an immediate support and resistance. The moving averages are slowing down in the 4 hours chart. The resistance can be found at 101.40, the support comes in at 100.40.
MACD remained at the same level which confirms the strength of buyers. RSI is close to the overbought area.
We prefer to stay neutral for now. We expect further sideways trades in the coming days.