USD/JPY -0.02% struggled to build on its tepid recovery after US economic releases disappointed overnight.
US PPI unexpectedly contracted in December, while weekly jobless claims also missed expectations.
Producer Price Index (PPI) came in at -0.1% m/m as against 0.4% rise recorded in the previous month. Initial weekly jobless claims rose to 261K during the week ended Jan. 6.
USD/JPY -0.02% is extending massive downside following Tuesday’s reduction in JGBs purchases by the BoJ.
Technically, the pair is trading with a bearish bias. Indicators on daily charts support more downside.
The pair has broken major supports and is currently hovering around 111.12, scope for test of 110 levels.
Upside capped at 200-DMA at 111.69, bearish invalidation on retrace above.
Markets focus on US CPI 0.23% and retail sales data due later in the NY session for further impetus.
Support levels - 111, 110.84 (Nov 27 low), 110.15 (61.8% Fib retrace of 107.318 to 114.737 rally).
Resistance levels - 111.69 (200-DMA), 112, 112.21 (100-DMA)
Good to go short on rallies around 111.25, SL: 111.75, TP: 110.90/ 110.15/ 110
Submit Your Comments: