The USD/JPY pair is trading in the red at 150.55 at the time of writing and it seems very heavy. The greenback was punished by the Dollar Index's sell-off, while the JPY rallied as the Japanese Yen Futures rebounded. After such impressive growth, the corrective phase was somehow expected.
Fundamentally, the USD depreciates versus its rivals as the US reported lower inflation. The CPI surged by 0.0% compared to the 0.1% growth estimated, CPI y/y came in at 3.2% versus the 3.3% estimated, while Core CPI disappointed as well. Tomorrow, Japan is to release the Prelim GDP and Prelim GDP Price Index. On the other hand, the US publishes the retail sales data, PPI, Core PPI, and Empire State Manufacturing Index.
USD/JPY Targeting 150.00 Psychological Level!
The USD/JPY pair crashed after retesting the upper median line (uml) of the descending pitchfork. Technically, escaping from the Rising Wedge pattern announced a potential correction.
Now, it has taken out the inside sliding line (sl) and the weekly pivot point of 150.79, signaling more declines.
USD/JPY Outlook!
Dropping and closing below the pivot point of 150.79 activated a downside continuation and was seen as a selling opportunity. The bias is bearish as long as it stays below the sliding line (sl). The S1 (149.99) stands as a downside obstacle.
