USD/JPY persistent around 114.00 level, Japan's GDP data, US Retail Sales figure awaited

• USD/JPY stays around 114.00, US dollar holds fort above 95.00.
• Investors look for impetus from Japan's GDP data, Biden and Xi meet crucial.
• USD/JPY carries on last week sentiments, US consumer inflation data affect pair.  

USD/JPY eases around 114.00 level and if the pair can break above monthly high near 114.70, there aren't any noteworthy chart points until the December 2016 high near 118.65.

The cross last week spiked on the back of US Treasury yields and gradually eased after annual consumer inflation in the US accelerated to a three-decade high of 6.2% in October. It also pushed for earlier interest rate hikes than expected from the Federal Reserve.

Apart from Japan's wholesale inflation, which rose four-decade high in October, the stimulus news has reciprocated in the pair's price action. To recapitulate, Bank of Japan (BoJ) policymakers opined that inflationary pressures arising from higher energy prices are moderate, but monetary policy easing should be upheld.

Amidst US mixed market China Retail Sales and Industrial Production data will be crucial to watch as Joe Biden and Xi Jinping will hold a virtual summit on Monday. It is intended to halt, or at least slowdown, the downward spiral in US-Chinese relations. The two leaders have talked twice via phone since Biden took office in January. This video conference will be their most substantial and investors of major forex will keep their eyes peeled.

The US dollar index, which tracks it against a basket of its peer, is firming a foothold above 95.00, after last week's monetary policy views that boosted the US Treasury yields. It is the highest rise in seven weeks, which propelled the greenback. The Index is trading at 95.11, down by 0.07%.

USD/JPY will find impetus from Japan's Gross Domestic Product (GDP) data and US Retail Sales MoM figures besides the China data.

USD/JPY Technical Levels

USD/JPY is sitting on 113.84, 21-day Simple Moving Average (SMA) for support on the daily chart. The resistance is weekly tops 114.30 and the next upside barrier is 114.70 (monthly high). The journey north for the pair will have 115.00 to test.

USD/JPY support side is rather laid with SMA support, wherein the support level is 50, 100 and 200-day SMAs with value 112.23, 111.14 and 109.91, respectively.

Daily Chart

Additional Levels