USD/JPY: The decline is far from over

As the American dollar remains weak, the USD/JPY pair trades at fresh monthly lows. The pair fell to 104.29, and trades nor far above this last, ready to pierce July’s monthly low at 104.18, FXStreet’s Chief Analyst Valeria Bednarik reports.

See – USD/JPY to extend lower towards 104.20 – OCBC

Key quotes

“Japan published August National inflation figures, which missed expectations. Annual CPI increased by just 0.2%, while the core reading came in at -0.4% as expected. The US session will bring the preliminary estimate of the September Michigan Consumer Sentiment Index, foreseen at 75 from 74.1 in August.”

“The 4-hour chart shows that the USD/JPY pair keeps developing below a firmly bearish 20 SMA, while the larger ones slowly turn south well above the shorter one, signaling strong selling interest in the short-term. Technical indicators are directionless although well into negative territory.”

“The immediate support level is 104.18 July monthly low, with a break below it anticipating a steeper decline ahead.”