The USD/JPY pair is trading modestly lower in the 106.20 price zone as gains bearish strength but needs to break below 105.90, Valeria Bednarik, Chief Analyst at FXStreet, reports.
Key quotes
“Japanese data was mixed, as the July Corporate Service Price Index printed at 1.2%, better than the previous 0.9%. However, the June Leading Economic Index was downwardly revised to 84.4 from 85. The Coincident Index, on the other hand, improved to 76.6 from the preliminary estimate of 76.4. The focus is now on July US Durable Goods Orders, seen up by 4.3% after gaining 7.6% in the previous month. Core readings are also seen positive, although advancing just modestly.”
“USD/JPY is lower in range, below the 61.8% retracement of its latest daily decline. In the 4-hour chart, the pair is pressuring a bearish 200 SMA, while the 20 SMA converges with the 100 SMA at around 106.00. Technical indicators, in the meantime, ease within positive levels but lack momentum enough to confirm an upcoming decline.”
“Bears could take control of the pair on a break below 105.90.”
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