USD/JPY Current Price: 109.45

  • Tokyo annual inflation seen at 0.05% in March, core CPI expected to hold at 0.7%.
  • The dollar’s broad weakness overshadowed rallying equities.
  • USD/JPY turned short-term bearish, has room to extend its decline.

The USD/JPY pair has finally given up, turning negative and settling at daily lows in the 109.20 price zone, amid the broad dollar’s weakness. The pair fell throughout the first half of the day amid easing optimism leading to losses in Asian and European equities. The pair was unable to change course during US trading hours, as despite the positive performance of Wall Street, the greenback shed ground following the release of weekly unemployment claims. US Treasury yields failed to advance, ending the day just marginally lower.

Japan is scheduled to publish March Tokyo CPI during the upcoming Asian session, foreseen at 0.5% YoY from 0.4% previously. The core reading, ex fresh food and energy, is seen stable at 0.7%.

USD/JPY short-term technical outlook

The USD/JPY pair is trading at its lowest in a week and has room to extend its slump during the upcoming sessions. In the 4-hour chart, it has broken below its 20 SMA, which slowly grinds lower at around 110.75, while approaching a flat 200 SMA, this last, providing support at around 108.60. Technical indicators in the mentioned time-frame head firmly lower within negative levels, signalling additional declines ahead. The pair has room now to extend its decline toward the 108.50 area, where it has relevant intraday highs and lows.

Support levels: 109.20 108.80 108.50

Resistance levels: 109.60 109.90 110.15  

View Live Chart for the USD/JPY


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