USD/JPY is currently in a bearish impulsive momentum after getting bounced off from the 114.40 resistance level recently. USD has been losing its grounds due to bad economic reports published recently and it seems to continue further if USD do not provide any positive economic reports in the coming days. Despite Japan observing holiday for Marine Day yesterday, JPY has gained well against USD which does signal the weakness of USD and strength of JPY in the current market scenario. we have USD Import Price report to be published which is expected to show less deficit at -0.2% from the previous value of -0.3% and NAHB Market Index is expected to be unchanged at 67. Though the economic reports are not quite a high impact in nature but can help USD to climb over some pips in the process. Today JPY do not have any economic reports to be published but still dominating the USD on its way and it is expected to continue further this week.
Now let us look at the technical view, the price is currently residing below the dynamic level 20 EMA with a daily close below it which signals further bearish pressure in the market for the coming days. The price is currently residing inside a large corrective structure between 110 to 115 and until price breaks below or above this structural support or resistance, the market is expected to corrective in nature. Currently, the price is expected to reach 110.20 support level if the price remains below the 20 EMA with a daily close. The bearish bias will continue further until price breaks above the 20 EMA with a daily close.
The material has been provided by InstaForex Company – www.instaforex.com