USD/JPY is currently residing in the support area of 108.50 – 109.20 area from where the price is showing some bullish pressure after a long impulsive bearish trend. The economic reports of JPY have been quite in its favor recently which helped the currency to gain momentum over USD in a non-volatile manner which leads the price to sustain the bearish pressure by now. Today JPY Household Spending report was published with negative value of -0.1% which decreased from the previous value of 1.7% which was expected to be at 1.6%, Unemployment Rate increase to 2.8% which was expected to be unchanged at 2.7% and Retail Sales report showed an increase to 3.6% which was expected to be unchanged at 2.1%. Moreover, today BOJ Core CPI report is yet to be published which is expected to decrease to 0.5% from the previous value of 0.6%. On the other hand, ahead of the upcoming high impact economic reports to be published on Friday, today USD CB Consumer Confidence report is going to be published which is expected to increase to 123.2 from the previous figure of 122.1 and S&P/CS Composite-20 HPI report is expected to have slight decrease to 6.3% from the previous value of 6.4%. As of the current scenario, the worse outcome of the JPY economic report weakened the bearish pressure in the pair already where USD is expected to gain some momentum in the coming days having NFP, Average Hourly Earnings and Unemployment Rate report to be published. Though JPY is losing some grounds now due to recent worse economic report results, but the pullback is expected to be very short-term and JPY is expected to gain further momentum in the long-term.
Now let us look at the technical view. The price is showing some bullish pressure off the 108.50 area from where the price is expected to proceed higher towards the dynamic level of 20 EMA or at best towards 111.00 area before the price proceeds with the bearish trend in the future. As the price remains below 111.00 the bearish bias is expected to continue further.
