USD/JPY has been impulsively bearish after bouncing off the resistance level of 114.40. As of the recent bad economic reports of USD without any hint of a Rate hike in the coming days made JPY gain some momentum to dominate. The dollar is currently in a defensive mode due to political unrest in the country and long predicted policy of weakness of dollar communicated by Trump in the beginning of this year. Today JPY Prelim Industrial Production report was published with a positive figure as expected at 1.6% which previously was at -3.6% and Housing Starts report also showed positive report with an increase to 1.7% from the previous value of -0.3% which was expected to be at 0.1%. The positive economic reports of JPY did help the currency to keep the bearish momentum quite intact and signals further gains. On the USD side, today Chicago PMI report was published with the worst figure at 58.9 which previously was at 65.7 which was expected to decrease to 60.8 but Pending Home Sales report showed positive report with an increased figure at 1.5% from the previous value of -0.7% which was expected to be at 0.9%. To sum up, JPY has been quite dominating over USD recently which is expected to remain intact until any high impact report leading to corrective structure or retracement in this pair.
Now let us look at the technical view, the price is currently residing at the edge of support level of 110.20 which is expected to break below with a daily close today. If price breaks below 110.20 with a daily close today then we will be looking forward to selling with a target towards 108.00 in the coming days. On the other hand, if price rejects off the support level of 110.20 with a daily close today then we will be looking forward to buying with a target towards 20 EMA dynamic level resistance. As the price remains below 20 EMA dynamic level resistance we will be in bearish bias in this pair.
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