USD/JPY: watch bearish signals
USD/JPY has breached down an important support line which was limiting the downside since the middle of January. The pair also went below 55- and 100-day MAs. This surely provides bearish signals. Now we expect the pair to slide at least to 118.30. Given the weak US data and the growing certainty that the Federal Reserve won’t start raising rates in June, further decline to the levels below 117.00 looks very likely.
Next week there will be only few important data releases in Japan like trade balance on Wednesday. Keep an eye on figures from the US, though there won’t be many of them, and the market’s risk sentiment.