USD/JPY Forecast: Nearing critical 108.90 support
USD/JPY Current Price: 109.23
- Japan’s National core inflation seen ticking marginally higher in November.
- Dismal US data and political uncertainty weighed on the USD/JPY.
- USD/JPY broke lower, poised to challenge bulls’ determination around 109.00.
Safe-haven assets gained bullish traction mid-US afternoon, resulting in USD/JPY breaking lower. The pair came under selling pressure during US trading hours amid dismal American data, later accelerating its slump, despite Wall Street reaching all-time highs. The USD/JPY pair reached a daily low of 109.17, trading a handful of pips above the level ahead of the Asian opening.
Japan didn’t release macroeconomic figures early Thursday, although, in the next hours, the country will publish November National Inflation. The annual CPI is foreseen at 0.2%, matching its previous reading, while the core CPI is foreseen ticking up to 0.5% from 0.4% previously.
USD/JPY short-term technical outlook
The USD/JPY pair is bearish in the short-term as the 4-hour chart shows that it finally moved away from its 20 SMA, which now gains bearish strength above the current level. Technical indicators have pared their declines, but remain at daily lows. The next relevant support is 108.90, with a break below the level favoring a bearish extension during the last trading day of the week.
Support levels: 108.90 108.60 108.25
Resistance levels: 109.40 109.75 110.00
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.
