USD/JPY Forecast: Bears looking for 108.00 and lower
USD/JPY Current price: 108.66
- BOJ’s Governor Kuroda warned core inflation is likely to fall in the near-term.
- US Treasury yields dipped to fresh monthly lows, weighing on USD/JPY.
- USD/JPY pressures April low and looks poised to extend its slide.
The USD/JPY fell for a fourth consecutive day, extending its April decline to 108.60. The broad dollar’s weakness and plummeting government bond yields maintained the pressure on the pair, as the yield on the 10-year US Treasury note slid to 1.539%, its lowest in over a month. The usual effects on USD/JPY were offset by substantial gains in global stocks.
At the beginning of the day, Bank of Japan Governor Haruhiko Kuroda hit the wires and warned that core inflation is likely to fall in the near-term but turn positive and accelerate the pace of increase thereafter. On the economic recovery, Kuroda maintained a cautious stance amid the ongoing pandemic pressuring consumption. Japan won’t publish macroeconomic data this Friday.
USD/JPY short-term technical outlook
The USD/JPY pair is trading near the mentioned monthly low and looks ready to extend its decline. The 4-hour chart shows that the 20 SMA maintains its firm bearish slope above the current level and that it is about to cross below the 200 SMA. Technical indicators, in the meantime, stand directionless within negative levels, with the RSI approaching oversold readings.
Support levels: 108.65 108.30 108.00
Resistance levels: 109.20 109.60 110.00
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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.
