USD/JPY: Bearish potential continues to be limited

The USD/JPY pair has been trading between 107.30 and 108.10, currently at 107.84, for almost two weeks and is technically neutral, FXStreet’s Chief Analyst Valeria Bednarik briefs. 

Key quotes

“US will release April Durable Goods Orders, seen plunging by 19%, which would be a new record fall. It will also publish the second version of Q1 GDP, seen unchanged at -4.8%, and Initial Jobless Claims for the week ended May 22, seen printing 2.1 million.”

“The potential of a bearish extension seems limited in the short-term, as the 4-hour chart shows that the pair is holding above a flat 20 SMA, while the 100 SMA advances below the 200 SMA. Technical indicators, however, have turned lower within neutral levels.”

“USD/JPY would need to clear one of the extremes of the range to have chances of gaining some directional traction, although, given the ruling uncertainty, it would require a strong catalyst to trigger it.”