USD/JPY Remains Sub 110.00 Despite Poor CPI
USD/JPY is currently trading in recovery of yesterday's sell-off overall, but the offer tone persists while price remains below the 110.00 level with lows made at 109.52.
USD/JPY sold off yesterday as markets pushed back risks of BoJ intervention. However, as noted here by Ivan Delgado, head editor at FXStreet, "Japanese inflation numbers just went from bad to worse, with Tokyo May figures all coming worse than the previous month, while the national CPI for April was also poor." So some softness in the Yen could be expected as markets prepare for further easing by the BoJ.
Valeria Bednarik, chief analyst at FXStreet explained that the technical structure remains neutral. "The pair meeting some short term buying interest around 109.50,a major Fibonacci support, but the downward pressure increases, as the technical indicators look softer and point to break below their mid-lines in intraday charts. The key support for this Friday is the next Fibonacci level around 108.70, as it will take a break below this last to confirm additional bearish strength."
