This pair is moving lower most days of the week!
Will the upcoming US PPI release allow the downtrend to gain momentum?
For now, USD/JPY is stalling around the 138.00-138.50 area, and might consider a quick pullback before resuming the slide.
USD/JPY 15-minute forex Planned by TV
Check out this ongoing downtrend for USD/JPY!
The pair seems ready to test the downtrend line that has been holding for the past few days. Did I mention that the resistance area lines up with the 50% Fibonacci retracement as well?
Larger decline could still reach 61.8% which coincides with the pivot point (139.02) near a key psychological mark.
If any of these holds as resistance, the price can resume the decline to the swing low at 138.07 or create new levels closer to S1 (137.63).
Technical indicators indicate a continuation of the slide, as the 100 SMA is below the 200 SMA to reflect bearish sentiment, while the Stochastic is starting to drop from the overbought territory.
The oscillator has plenty of room to head south before it reverses exhaustion among the sellers, so the downtrend can continue until oversold conditions are met.
Of course the dollar can take cues from the upcoming US PPI report, as more signs of weak inflation pressures could dampen hopes of a July FOMC rate hike.
Remember, US CPI numbers actually came in below estimates, with the annual figure falling from 4.0% to 3.0% – the lowest since March 2021 and not too far off the Fed’s inflation target.
Meanwhile, the intervention jitters in the Japanese yen keep the currency supported for the time being.
Do you think USD/JPY could head much lower from here?
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