The USDJPY pair continues to show bearish momentum as the USD remains weak due to resilient US growth and falling inflation. Despite concerns about consumer spending, recent US Retail Sales data suggest a soft-landing narrative, supporting risk sentiment. The JPY is expected to keep losing ground against major currencies unless there is a significant change in fundamentals.
Yesterday, the price broke through a key trendline, triggering a quick move lower in the USDJPY pair. The Yen may need weak US growth data to see sustained strength, but as long as global growth remains stable, the JPY is likely to stay in a downtrend.
On the daily chart, USDJPY broke through a key trendline around 158.00, increasing bearish momentum. The next target is the 152.00 level, where buyers may step in for a new cycle high. Sellers currently remain in control.
Looking at the 4-hour chart, there is a resistance zone around 157.00, where sellers may enter with a defined risk above the trendline for a potential drop to 152.00. Buyers will look for a move above 158.00 to regain control and aim for a new cycle high.
On the 1-hour chart, the bearish setup around the trendline is more evident. Upcoming catalysts include US Jobless Claims figures today and Japanese CPI data tomorrow.
Overall, the USDJPY pair is poised for further downside, with key levels and resistance zones to watch for potential trading opportunities. Stay informed with the latest economic data and technical analysis to make well-informed trading decisions.