USD/JPY: Bearish tone ahead of US data

The USD/JPY pair retains its bearish tone, despite the wait-and-see stance ahead of US releases, FXStreet’s Chief Analyst Valeria Bednarik reports.

Key quotes

“The US economy is expected to have contracted 4.0% in the three months to March, as a result of the ongoing coronavirus pandemic.”

“The Fed is not expected to make changes to its policy, after flooding the market with different stimulus measures in the last two months, also as a result of the coronavirus crisis. Still, Powell & Co could hint what’s next, should the economy need more support.”

“Technical indicators consolidate near weekly lows, the RSI at 30, with no signs of downward exhaustion.”

“The next relevant support comes at 106.10, with a break below it opening the door for a decline sub-105.00 during the following sessions.”