USD/JPY has been residing inside a large corrective structure for a few months. The price has been quite volatile recently as well. For last few days, the price has not shown any progress in any direction rather than certain rejections on both side of the market indicating confused market sentiment in the market. Today, Japan's Current Account report was published which showed an increase to 2.27T from the previous figure of 2.03T which was expected to be at 1.98T and Economic Watchers Sentiment report also showed an increase to 51.3 from the previous figure of 49.7 which was expected to be at 49.9. On the USD side, today NFIB Small Business Index report is going to be published which is expected show a slight decrease to 105.1 from the previous figure of 105.3, IBP/TIPP Economic Optimism report is expected to show an increase to 54.2 from the previous figure of 53.4, and FOMC Member Kashkari is going to speak today about nation's key interest rates and monetary policies, his stance is expected to be neutral in nature. The mixed results of the economic reports might lead to further weakness of USD against JPY. Japan's upbeat economic reports are to facilitate further gains in this pair. USD is expected to be quite weaker against JPY until the US comes up with some positive fundamental data or events in the coming days.
Now let us look at the technical chart. The price is currently residing in a corrective range whereas the bullish rejections are quite larger than the bearish rejection. This signals that the price is expected to show some bearish move after the break of the range. The pair has been residing inside the corrective structure between 108.30 and 114.30 area for last few months where the current market situation indicates further bearish pressure inside the corrective structure. Currently, the price is expected to reach 110.60 support level in the coming days. Later, if the price break below 110.60 with a daily close, then we will be looking forward for the price to move down towards 108.30 in the future. As the price remains below the previous daily spike high of 113.50, the bearish bias is expected to continue further.
