USD/JPY: Slight bias to the downside

The USD/JPY pair is trading at around 107.25, still neutral, but has more chances of finally falling, FXStreet’s Chief Analyst Valeria Bednarik reports. 

Key quotes

“Japan published overnight the June National CPI which came in at 0.1%, better than the 0% expected. The core reading, which excludes fresh food prices, came in flat at 0%, better than the -0.1% expected. The US, on the other hand, will publish the Chicago Fed National Activity Index, foreseen in June at 3.24 from 2.61 in the previous month.”

“The 4-hour chart shows that the USD/JPY pair is contained between directionless moving averages, while technical indicators remain flat around their midlines. The moving averages are within a 20 pips’ range, in line with the lack of action around the pair.” 

“Bigger time-frames indicate that the bullish potential remains limited, as selling interest continues to reject advances around a mild bearish 100 DMA.”