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USD/JPY remains on the bearish path after the pair peaked for the day at 105.68, trading now marginally lower daily basis in the 105.20 price zone. USD/JPY is technically bearish and poised to extend its decline towards the 104.40 price zone, Valeria Bednarik, Chief Analyst at FXStreet, reports.

Key quotes

“Japan published the June Corporate Service Price Index, which improved to 0.8% YoY from 0.5% in the previous month. The macroeconomic calendar will remain light this Tuesday, although the US will publish the CB Consumer Confidence, foreseen at 94 from 98.1 in the previous month.”

“USD/JPY is trading near the multi-month low achieved this week at 105.11 and poised to extend the slide. The 4-hour chart shows that technical indicators resumed their declines after correcting extreme oversold readings, while the 20 SMA has extended its slide above the current level, and below the larger ones.” 

“The main support and bearish target is 104.45, where the pair bottomed multiple times weekly basis.”