USD/JPY analysis: bearish momentum accelerates ahead of Japan's CPI

Valeria Bednarik FXStreet

USD/JPY Current price: 111.11

The USD/JPY pair advanced up to 111.70 mid US session, but reverse course suddenly after failing to clear a strong Fibonacci resistance, and as Wall Street plunged. There was no clear catalyst behind the late decline, but clearly, mixed US data released at the beginning of the session was not enough to fuel a rally in the pair. During the upcoming Asian session, Japan will release its June National CPI figures and Tokyo July CPI ones, forecasted to remain depressed and near its recent lows. The pair is ending the day a handful of pips above a daily of 110.77. and poised to extend its decline, given that in the 4 hours chart, technical indicators have turned sharply lower, having entered negative territory, whilst the intraday advance stalled short of its 100 and 200 SMAs, with the shortest gaining downward slope above the largest, in line with a bearish continuation for this Friday.

Support levels: 110.90 110.60 110.25

Resistance levels: 111.60 112.00 112.45

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Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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