FxWirePro: USD/JPY tests 21-EMA support, dollar slips on expectations of less hawkish Fed

Chart - Courtesy Trading View 

USD/JPY was trading 0.49% lower on the day at 147.18 at around 10:00 GMT, outlook is bearish.

The US dollar remains under pressure amid growing expectations of less hawkish Fed. 

U.S. consumer confidence ebbed in October after two straight monthly increases amid inflation concerns and a possible recession next year.

Data released on Tuesday showed the US Conference Board's consumer confidence index fell to 102.5 this month from 107.8 in September, missing forecasts at 106.5 by a wide margin.

The survey's present situation index tumbled to 138.9, the lowest level since April 2021, from 150.2 in September. While its expectations index fell to 78.1 from 79.5 last month.

The S&P CoreLogic Case-Shiller national home price index increased 13.0% annually in August after advancing 15.6% in July. On a monthly basis, prices fell 0.9% in August, the second straight monthly drop.

Further, home prices increased 11.9% in the 12 months through August after rising 13.9% in July. Prices fell 0.7% on a monthly basis after decreasing 0.6% in July. 

On the other side, the Bank of Japan increased the amount of bonds it was planning to buy in the day's operations on Wednesday, affirming its commitment to defend its ultra-low interest rate policy.

The BoJ is expected to keep policy unchanged at its next meeting ending on Friday, despite continued weakness in the yen.

USD/JPY is showing some weakness on the intraday charts. Price action is holding support at 21-EMA, breach below will plummet prices further.