USD/JPY: bearish pressure builds up

Valeria Bednarik FXStreet

USD/JPY Current price: 110.96

The USD/JPY pair traded in quite a limited range during the first half of the day, as investors remained cautious ahead of US GDP release, barely reaction to Japanese inflation figures released overnight. CPI figures came in line with market's expectations, with the core consumer price index up by 0.4%, its sixth consecutive advance, still far below BOJ's 2.0% target, now expected to be achieved in 2019. The pair fell down to 110.87 overnight, recovering the 111.00 level, but losing it back after the release of US data. Despite the economy is estimated to have grew at a solid 2.6% in the second quarter, the sub-readings involving inflation disappointed alongside with quarterly PCE prices, up by just 0.3% in Q2.

Nearing its recent lows, the 4 hours chart shows that the price holds near its recent lows and well below its moving averages, with the 100 SMA approaching the 200 SMA, and technical indicators turning lower within negative territory, but with limited downward momentum. The weekly low of 110.71 is now the immediate support, with a break below it exposing the 110.00 threshold.

Support levels: 110.70 110.40 110.00

Resistance levels: 111.20 111.60 112.00

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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