FxWirePro: USD/JPY extends weakness below 21-EMA, further weakness on cards

Chart - Courtesy Trading View 

Technical Analysis:

- USD/JPY was trading 0.20% lower on the day at 146.04 at around 04:45 GMT

- The major is extending break below 21-EMA, more weakness likely

- Momentum is bearish, stochs and RSI are sharply lower, RSI has slipped below 500

- Price action is below 200H MA and GMMA indicator has turned bearish on the intraday charts

Fundamental Overview:

Investors are cautious and remain on the sidelines ahead of the US Gross Domestic Product (GDP) and US Durable Goods Orders data.

Despite rising interest rates the US GDP is expected to report a growth rate of 2.4% in the third quarter of 2022 after a -0.6% reported in the previous quarter.

Also, the US Durable Goods Orders are expected to outperform with a rise of 0.6% against a drop of 0.2% prior.

Focus now also on the interest rate decision by the Bank of Japan on Friday, where the central bank is widely expected to maintain rates at ultra-low levels. 

Major Support Levels: 145, 144, 143.39 (55-EMA)

Major Resistance Levels: 146, 146.67 (21-EMA), 147.29 (5-DMA)

Summary: USD/JPY slips below 21-EMA. Technical indicators are bearish, the major is poised for further downside.