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The USD/JPY pair peaked at 109.19 during the Asian session, now trading in the 108.70 price zone. According to FXStreet’s Chief Analyst Valeria Bednarik, the corrective decline may continue towards 107.70.

See –  USD/JPY: Levels between 109.00 and 110.00 to be the top for this current rally – MUFG

Key quotes

“Japan published the Q4 Gross Domestic Product, which resulted at 2.8%, below the expected 3%. Overall Household Spending in January contracted by 6.1%, worse than the -2.1% expected. Finally, February Machine Tool Orders were up 36.7% from 9.7% in January.”

“The USD/JPY pair has corrected extreme overbought conditions in the near-term, but its bearish potential is well-limited.”

“The slide may continue towards 107.70 on a break below the 108.40 support level.”