USD/JPY technical analysis: Drops to fresh weekly lows, eyeing 108.00 mark ahead of US CPI

12 Jun 2019

  • The USD/JPY pair extended its overnight pullback from over one-week-old ascending trend-line hurdle and continued losing ground through the early European session on Wednesday.
  • A subsequent slide below 100-hour SMA, amid a shift in the risk mood, was seen as a key trigger for bearish traders and behind a follow-through weakness to fresh weekly lows.

Given that technical indicators on hourly and daily charts have failed to gain any meaningful traction, the pair now seems poised to resume its well-established near-term bearish trend and head back towards challenging multi-month lows support near the 107.85 zone.

Despite the bearish set-up, traders might still be reluctant to place any aggressive bets and prefer to wait on the sidelines ahead of Wednesday’s important release of the latest US consumer inflation figures, due later during the early North-American session.

On the upside, immediate resistance is now pegged near the 108.45-50 region, above which a bout of short-covering could lift the pair back towards challenging the mentioned trend-line resistance, currently placed just ahead of the 109.00 round figure mark. 

USD/JPY 1-hourly chart

 

Trading foreign exchange on margin carries high potential rewards but also high potential risks that may not be suitable for all investors. Before deciding to trade foreign exchange, you should carefully consider your investment objectives, level of experience and risk appetite. Past performance is not indicative of future results, which can vary due to market volatility. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

Any opinions, news, research, analyses, prices or other information contained on this website or linked to from this website are provided as general market commentary and do not constitute investment advice. AUSFOREX does not accept liability for any loss or damage, including any loss or profit, which may arise directly or indirectly from use of or reliance on such information.

Register a Demo Account

Test drive our trading platform with a 30 day free trial

Register a Live Account

Get started.Open a Forex and CFD trading account with AUSFOREX now

Deposit Funds

Express way for deposit funds

Live Chat

Chat live with one of our 7*24 hour multilingual customer service team