USD/JPY set to extend its fall below 109.00

USD/JPY is technically bearish in the near-term and could extend its slump to sub-109.00 as pressure mounts on the greenback, Valeria Bednarik, Chief Analyst at FXStreet, reports. 

See – USD/JPY: Improving domestic data to limit yen depreciation – CIBC

Japanese data showed signs of economic progress at the end of Q1

“Japanese data released at the beginning of the day was generally encouraging. The March Producer Price Index was up 0.8% MoM and 1% YoY, beating expectations. Machine Tool Orders in the same month increased 65%, largely surpassing the previous 36.7% advance.” 

“The upcoming American session will bring a 10-year Note Auction and a speech from Fed’s Eric Rosengren.”

“The USD/JPY pair is set to extend its decline in the near-term, as the 4-hour chart shows that the slide extends below the 20 and 100 SMAs, with the shorter one accelerating south.” 

“The pair bottomed this month at 108.99, the level to break to confirm a steeper decline.”