The American dollar is giving up some of its latest gains, which pushes USD/JPY sub-107.00 this Friday. The pair could turn bearish on a break below the 106.60 level, FXStreet’s Chief Analyst Valeria Bednarik reports.
Key quotes
“Japan published Tokyo June inflation, which came in at 0.3% YoY, well below the 0.6% expected, although the core reading, which excludes fresh food, met the market’s expectations at 0.2% while The US will publish today May Personal Income and Personal Spending figures, which include the core PCE inflation, the Fed’s favorite inflation measure, foreseen at 0.9%. from 1.0% previously.”
“The USD/JPY pair is trading around the 23.6% retracement of its latest daily slump, after nearing the 38.2% retracement of the same decline earlier this week. The pair is neutral-to-bearish, according to the 4-hour chart, as it remains below its 100 and 200 SMA, which converge around the mentioned Fibonacci 38.2% retracement, as the pair battles with a directionless 20 SMA. Technical indicators, in the meantime, remain flat around their midlines.”
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