The USD/JPY pair is trading in the red at 149.70 at the time of writing and it seems very heavy in the short term as the Dollar Index crashed, while the Japanese Yen Futures bounced back. The price action signaled exhausted buyers and announced a potential correction.
Fundamentally, the Japanese BOJ Core CPI may report a 3.3% growth, while Final Manufacturing PMI could jump from 48.5 to 48.9 points. On the other hand, the US Flash Services PMI is expected to drop from 50.1 to 49.9 points indicating contraction, while Flash Manufacturing PMI could be reported at 49.5 points. Poor US data should punish the greenback.
USD/JPY 149.66 Key Support!
The USD/JPY pair failed to stabilize above the 149.93 static resistance signaling an overbought situation.
Dropping below the uptrend line indicates a potential correction. The Rising Wedge pattern could be activated after making a new lower low, after taking out the 149.66 support.
USD/JPY Outlook!
Dropping and closing below the Friday's low of 149.61 activates more declines. This represents a selling opportunity.
