USD/JPY chart - Trading View
USD/JPY extends pullback to probe 10-day low. Risk-off in the early-Asian session weighs on the pair.
Responding to Washington’s withdrawal of Hong Kong’s special US status, Hong Kong’s government warned late Thursday that such a move will not only harm the interests of Hong Kong but also significantly those of the US.
Upbeat Japanese data dump also puts a bid under the Japanese yen, further adding to the pair's downside pressure.
Data released earlier today showed Japan’s Tokyo Consumer Price Index (CPI) YoY for May rises to 0.4% whereas core CPI grew above -0.2% forecast and -0.1% prior by +0.2% mark.
Further, the Unemployment Rate dropped to 2.6% from 2.7% forecasts and 2.5% earlier whereas Job/Applicants Ratio slipped below 1.33 forecast to 1.32.
Japan’s April month Retail Sales also came in better than -11.5% expected at -9.6% However, the Preliminary reading of April month Industrial Production shrank more than -5.1% forecast to -9.1%.
Technical indicators are turning bearish. Failure to hold above 55-EMA raises downside risk.
RSI has slipped below 50 and Stochs are on verge of rollover from overbought levels.
Price action is hovering around 4H 200 SMA at 107.26. Break below will see dip till cloud base at 106.70.
