USDJPY on Wednesday dropped -1.41% to 138.37. Looking bearish. What we know.

USDJPY Analysis

Performance after Wednesday
Wednesday-1.41%-197.8 Pips
Week to-date-2.62%-371.8 Pips
July-4.09%-589.6 Pips

Upcoming key events (London Time)

Thu 01:30 PM USD Producer Price Index excluding Food and Energy sectors (12-mth)
Fri 03:00 PM USD Michigan Index of Consumer Sentiment

What happened lately

🇺🇸 U.S. CPI Inflation Rate excluding Food and Energy sectors (1-mth) in June below forecast and dropped to 0.2% compared to previous figure 0.4% in May Bureau of Labor Statistics

USDJPY 4-hour Chart by TradingView

What can we expect from USDJPY today?

USDJPY on Wednesday dropped -1.41% to 138.37. Price is below 9-Day EMA while Stochastic is falling in oversold zone.

Updated daily direction for USDJPY looks bearish as the pair posted lower in Wednesday trading session.

Looking ahead for the day, immediate support level is at 137.62 (S1) with break below could see further selling pressure towards 136.88 (S2). To the upside, with the current momentum bearish, we prefer to look at breakout of the recent daily high of 140.16 as a potential indicator of buying interest. Failure to break the resistance level would continue to echo bearish sentiment. A close below 138.15 would indicate selling pressure.

For the week to-date, take note that USDJPY is bearish as the pair posted lower by -2.62%.

Key levels to watch out:

Daily Pivot138.89

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New Foreign Direct Investment in the United States, 2022. Bureau of Economic Analysis
Balance of Payments, May 2023 (Preliminary). Ministry of Finance

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