USD/JPY (a 4-hour chart)
Japanese markets were closed amid a public holiday - Vernal Equinox Day.
The pair preserved its undertone on Monday. The currency pair remained in a downward channel. The spot found some support close to its lower limit in the Asian session. The pair bounced off 112.50 and reversed some losses in the morning. The major maintained its bid tone afterwards and approached 113.00 ahead of the NA opening. According to 4 hours chart the price continued developing well below the moving averages. The 50-EMA kept heading lower while the 100 and 200 EMAs were neutral in the same timeframe. The resistance is highlighted at 113.00, the support comes in at 112.00.
MACD grew which indicates the sellers’ positions weakening. The RSI indicator held within oversold readings, and headed now north.
In order to recover some strength, USD/JPY needs to rise back and hold above 113.00. However, we see little potential for a USD/JPY rally and expect a fresh selling pressure in the short term.