USD/JPY unable to find direction ahead of Fed speeches

The USD/JPY pair is struggling to determine a near-term direction on Monday amid a lack of fresh fundamental catalysts. At the moment, the pair is trading at 111.30, a couple of pips above where it closed the previous week. 

Despite the increasing selling pressure on the greenback, the strong performance of the global equity indexes helps the pair remain resilient as the improved market sentiment make the safer JPY less desirable. After starting the week with a bullish gap, the US Dollar Index rose to its daily high at 97.34 during the European session but came back under a new bearish pressure and fell to its lowest level since early November at 96.78 in the last hour. As of writing, the pair is trading at 96.86, down 0.14% on the day.

Today's only relevant data from the U.S. showed that the Chicago Fed National Activity Index improved to 0.49 in April from 0.07 in March. Further details of the report revealed that the nonfarm payrolls rose by 211,000 in April after increasing by 79,000 in March.

• US: Chicago Fed National Activity Index points to increased economic growth in April

Philadelphia Fed President Patrick Harker will speak the top of the hour, which will be followed by Minneapolis Fed President Neel Kashkari's statements. A dovish tone could further weigh on the greenback and the risk appetite may not be enough to keep the pair supported.

• US: Fed speak will be the predominant driver for risk sentiment - TDS

Technical outlook

The initial hurdle for the pair could be seen at 111.60 (daily high) followed by 112.20 (100-DMA) and 113 (psychological level). To the downside, supports align at 111.15 (200-DMA), 110.25 (May 18 low) and 109.60 (Apr. 25 low).

• USD/JPY still targets 110.10 – UOB