Key Highlights
· US dollar faced a lot of selling pressure against the Japanese yen post the Brexit decision, as the USD/JPY pair declined heavily.
· There was a sharp downside move in USD/JPY, taking the pair below a major support area of 104.00-103.60.
· In the US today, the Gross Domestic Product Annualized will be released by the US Bureau of Economic Analysis, which is forecast to grow by 1% in Q1 2016.
· The US Consumer Confidence will be released by the Conference Board, which is forecasted to increase from 92.6 to 93.3 in June 2016.
USD/JPY Technical Analysis
The US dollar took a hit against the Japanese yen recently, and it even spiked below the 100.00 support area before recovering. During the downside move, the USD/JPY pair also broke a major support area of 104.00-103.60, which may now act as a resistance.
The pair is currently below the 100 and 200 hourly simple moving averages, which means there is a lot of bearish pressure. If the pair attempts to correct higher, then both the stated MA’s might act as a barrier for an upside move in the short term.
The pair recently broke a short-term bearish trend line, suggesting that there are chances that the pair may attempt to move towards the highlighted resistance area.