USD/JPY: looking for a break lower

Valeria Bednarik FXStreet

USD/JPY Current price: 109.71

The USD/JPY pair peaked at 110.17 at the beginning of the day, but quickly retreated back below the 110.00 mark, having consolidated around 109.80 during the first half of the day, as the negative sentiment persisted among worldwide investors. The release of US data ahead of Wall Street's opening, however, put it back on the bearish track, as PPI came below expected, with the core monthly reading down by 0.1%, and the YoY figure up by 1.8%, below previous 1.9% and the expected 2.1%. Also, initial jobless claims for the week ended August 4th came above expected, up to 244K from a revised 241K and the expected 240K. The pair is currently pressuring its weekly low of 109.55 and technically poised to extend its decline, as technical indicators in the 4 hours chart resumed their slides within bearish territory and at their lowest for the week, while the 100 SMA extends its decline below the 200 SMA, both above the current level and indicating that selling interest remains strong.

Support levels: 109.50 109.15 108.80

Resistance levels: 110.10 110.45 110.80

View Live Chart for the USD/JPY

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.

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