Valeria Bednarik, Chief Analyst at FXStrreet, via her US close report, notes that technically, USD/JPY still presents a neutral-to-bearish stance following the relief rally seen in finacial market during Wednesday, which allowed the pair to close the US session near day highs at 103.00.
Key Quotes
The USD/JPY pair traded around the weekly high set at 102.84 this Tuesday, but was mostly contained in a well-limited range, as the lack of interest in safe-haven assets pushed investors away from the cross. Data released early Wednesday, showed that Japanese retail sales fell more than expected in May in a third straight month of annual declines, down by 1.9% in May from a year earlier.
Adding to the JPY's bearish case was a strong comeback in worldwide stocks, and comments from Prime Minister Abe, on mobilizing all available policy measures to boost local growth. The fact that the JPY refused to fall in this scenario, suggests that markets are still quite bullish in the currency, beyond risk sentiment.
Technically, the pair presents a neutral-to-bearish stance, as in the 4 hours chart, the price keeps developing below its moving averages, whilst the RSI indicator holds flat around 47. The momentum indicator in the same time frame aims higher above its mid-line, but with no follow through in price, the upward potential remains limited, as long as selling interest keeps surging around 102.90.
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