USD/JPY Forecast: remains constrained above the critical 100.00 mark

USD/JPY Current price: 100.29

View Live Chart for the USD/JPY

The USD/JPY pair accelerated its decline after the release of US data, but remains constrained within a tight range above the critical 100.00 mark. The release of Japanese inflation during the past Asian session showed that consumer prices fell in July for a fifth consecutive month. National CPI declined at an annualized 0.4% pace in July, following a 0.4% drop the previous month, while core CPI, which measures price movement of a basket of goods and services less food products, fell 0.5% in the 12 months through July. The news should add pressure over the BOJ to offer some additional stimulus, but the pair fell anyway. Technically, the short term picture is bearish, as in the 1 hour chart, the price is back below its 100 and 200 SMAs, while indicators hold within negative territory, losing partially their downward strength. In the 4 hours chart, the Momentum indicator turned modestly lower around its 100 level, while the RSI heads south around 46 as the price keeps developing below a horizontal 100 SMA, this last around 101.00, also maintaining the risk towards the downside.

Support levels: 100.20  99.90 99.55

Resistance levels: 100.65 100.95 101.30