USD/JPY: bearish breakout underway

Valeria Bednarik FXStreet

USD/JPY Current price: 111.80

The USD/JPY pair broke its last 3-week range to the downside, plummeting to 111.68, its lowest since September 26th, after softer-than-expected US inflation and retail sales numbers. US inflation rose by less-than-expected in September, up by 0.5% after advancing 0.4% in August, still the biggest increase in eight months. Retail sales were up on the same month, but also missing expectations by a bit, coming in at 1.6% from market's forecast of 1.7%. While the figure were not that bad, they hurt the dollar short term, as the currency has been trading with a soft tone ever since the week started. The USD/JPY pair 4 hours chart shows that the price accelerated south after being unable to surpass its 100 SMA for the last couple of days, while technical indicators gain downward strength within bearish territory currently pressuring their weekly lows. A downward extension below 111.60 should favor a stronger decline for the days ahead.

Support levels: 111.60 111.20 110.75

Resistance levels: 112.00 112.30 112.65

View Live Chart for the USD/JPY

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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