USD/JPY to extend its bearish stance on a break below 108.30
|The USD/JPY pair trades in the 108.70 price zone, posting modest intraday gains but holding within familiar levels ahead of US CPI. As FXStreet’s Chief Analyst Valeria Bednarik notes, key support is seen at 108.30.
See – US CPI Preview: Forecasts from eight major banks
USD/JPY is neutral-to-bearish in the near-term
“The April Consumer Price Index is expected to have risen by 3.6% YoY, while the core number is expected at 2.3%. The US Federal Reserve has warned about this possible uptick, although policymakers consider it will likely be temporal, and announced they are willing to tolerate it. US Treasury yields are mute.”
“Japan published the preliminary estimate of the March Leading Economic Index, which improved to 103.2 from 98.7 previously. The Coincident Index came in at 93.1 from 89.9 in February.”
“The USD/JPY pair bottomed in the 108.30 area twice in May, the level to break to trigger a near-term bearish continuation.”
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