Japanese Yen Daily Outlook
Chart - Courtesy Trading View
USD/JPY slips lower, extending previous session's losses, breaks below 5-DMA support.
The major was trading 0.59% lower on the day at 135.39 at around 05:10 GMT, after closing 0.29% lower in the previous session.
US Dollar Index (DXY) drops for the fourth consecutive day as Fed’s Powell considered the present monetary policy bias appropriate to battle the inflation woes.
Investors ignored the hawkish guidance for July monetary policy but remain concerned about the risks of a global recession amid aggressive rate hikes, keeping broad sentiment fragile.
The U.S. dollar fell overnight after Powell acknowledged a recession was "certainly a possibility", but the Fed is not trying to engineer one.
On the data front, Japan Services PMI came at 54.2, significantly higher than the estimates and the prior print of 52.2 and 52.6 respectively.
Japan Manufacturing PMI however, slipped to 52.7 from the consensus of 54.4 and the former figure of 53.3.
Focus now will remain on the US PMI data due later on Thursday at 13:45 GMT. Manufacturing PMI is expected to slip to 56 from the prior print of 57. While the Services PMI may advance marginally to 53.5 from the former figure of 53.4.
Major bias for the pair remains bullish. 200H MA is immediate support at 134.81, breach below could drag the pair lower.
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