USD/JPY has been volatile and corrective, recently having resistance of the dynamic level and being above the support area of 108.50-109.20. Despite having positive Employment Change report of USD on Friday, JPY sustained the bearish momentum which resulted the price to reside between the 108.50-109.20 support area. Today, JPY Average Cash Earning report was published better than expected - at 0.7% which was expected to be at 0.6% decreasing from the previous value of 0.9%, and Leading Indicators report showed a slight decrease to 107.9% from the previous value of 108.3% which was expected to be at 108.1% The positive economic report helped the regain momentum after the recent bounce off the support area with impulsive USD gains over JPY. On the USD side, today, FOMC Member Dudley is going to speak about the upcoming monetary policies and the interest rate decision which is expected to have a rise on March 2018. Moreover, Crude Oil Inventories report is going to be published today as well which is expected to decrease to 3.2M from the previous figure of 6.8M. To sum up, JPY is currently quite unstoppable having positive economic reports fueling the gains and expected to dominate USD in the coming days taking the price much lower below the 108.50 support area.
Now let us look at the technical view. The price is currently quite bearish above the 108.50-109.20 support area where the price is expected to proceed much lower as of the current market impulsive bearish pressure. Having dynamic level of 20 EMA as a resistance, the bears in this pair seemed quite powerful currently and a daily close below 108.50 will lead to further impulsive bearish pressure in the pair with a target towards the support area of 107.00 in the coming days.
