USD/JPY heavy with technicals suggesting further downside risk

USD/JPY has opened the Asian session under strong selling pressure, following the combination of dismal US CPI readings as well as lower-than-expected numbers in US retail sales last Friday. The pair is exchanging hands at 108.50 lows.

According to Matias Salord, Analyst and Editor at FXStreet: "The latest economic numbers and actions taken by US President Trump continue to be supportive of the bearish trend in the USD/JPY pair, that posted the worst weekly results in months after losing more than 200 pips."

USD/PY technicals

Matias adds: "The acceleration took place after the pair broke the key technical support of 110.00/10. Short-term indicators could point to oversold conditions, but the Momentum is still very negative as price continues to search a new support. The weekly chart shows the RSI still not at extreme levels and price moving with a clear bearish trend. The next long term support is seen around 107.60/50. For the next days, any run below 110.10 could be seen as corrective; while if the US dollar consolidates above, it could gain support and look for a consolidation."