USD/JPY: Positive stance despite failing at a critical resistance area

The USD/JPY pair is trading in the 107.50 price zone, and the short-term picture shows that the risk remains skewed to the upside while data coming from Japan was extremely disappointing, FXStreet’s Chief Analyst Valeria Bednarik reports.

Key quotes

“The Japanese March preliminary estimate Leading Economic Indicator fell to 83.8 from 91.9, the biggest monthly drop on record. The Coincident Index for the same period, dropped to 90.5 from 95.4, the fastest pace of decline in almost a decade.”

“The US will publish today April inflation figures. The monthly CPI is expected at -0.8% from -0.4% previously, while the annual reading is foreseen at 0.4%, down from 1.5%. Core annual inflation is foreseen at 1.7%, down from 2.1% in March.”

“USD/JPY continues to trade above its 20 and 100 SMA, with the shorter one maintaining its bullish slope. The 200 SMA, continues to provide dynamic resistance, currently at 107.62.”