USD/JPY: mixed post G7 summit, remains on 110. handle

USD/JPY has started the week mixed in Asia after the weekend's G7 summit between finance ministers.

Japan is at odds with U.S. on currency market conditions as the moves in the Yen have been disorderly and makes for growing frustration within Japan's government because of the impact a stronger Yen has been having on exporters after the currency rallied nine percent already this year.

This has been creating speculation that the BoJ are about to intervene and Aso was very vocal at the G7 in an attempt to jawbone the currency lower. Subsequently, there could be some weakness in the yen going forward, but the Nikkei may not like the outcome of the event either on the open today while otherwise, data brings the trade balance April.

While Aso made Japan's concerns very clear, no action was taken by the G7 showing that there is a lack of cooperation between nations that are unwilling to coordinate stimulus to prevent the Yen from strengthening for they are all concerned about global growth risks and the strength of their own currencies. The last time the G7 approved intervention was in 2011 to help Japan to recover after a devastating earthquake, tsunami and a nuclear meltdown. 

USD/JPY levels

USD/JPY is in a tight 10 pip range in early Asia between 110.12/21 so far. A break to the upside looks for the 55 dma at 110.30 ahead of the 20th May high of 110.58 that has proven to be an area of offers.

However, stronger resistance would likely be located at the 27th April high at 111.74 and 111.85 24th april highs where the double top occurred and subsequent sell-off to 105.54 early May lows. To the downside, the 20 sma on the 4hr sticks is located at 109.90 and the 200 sma on the same time frame is located at 108.82.