USD/JPY: Incresing bearish potential with key support at 107.30
|The USD/JPY pair is trading marginally lower this Friday, technically neutral, with the risk skewing to the downside, FXStreet’s Chief Analyst Valeria Bednarik reports. Japan’s National inflation ex-fresh food fell to -0.2% YoY in April while the BoJ announced a further 30 trillion yen program to broaden coronavirus support.
Key quotes
“Japan published its National April inflation, which came in worse than anticipated. The CPI ex-fresh food was down by 0.2% when compared to a year earlier. Also, the BoJ had a monetary policy meeting, in which policymakers announced a further 30 trillion yen plan to broaden support to small and medium-sized companies, hit by the coronavirus pandemic.”
“The 4-hour chart shows that it’s holding above its 200 SMA but below the 20 SMA, with both lacking directional strength. Technical indicators hover directionless just below their midlines.”
“The USD/JPYpair traded as low as 107.31, which confirms the relevance of the 107.30 support. The bearish case will be firmer once the pair breaks below it.”
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