USD/JPY to extend its fall on a break below 108.65

USD/JPY trades marginally lower below the 109.00 figure as risk appetite keeps pressuring the dollar. The pair is technically bearish in the near-term and could accelerate its slump, according to FXStreet’s Chief Analyst Valeria Bednarik. 

US Retail Sales are foreseen bouncing from -3% to 5.9% MoM in March 

“Bank of Japan Governor Haruhiko Kuroda hit the wires at the beginning of the day, warning that core inflation is likely to fall in the near-term but turn positive and accelerate the pace of increase thereafter. On the economic recovery, Kuroda maintained a cautious stance amid the ongoing pandemic pressuring consumption.”

“The focus is now on US March Retail Sales, foreseen up by 5.9% MoM after falling 3% in the previous month. The core reading is expected at 6.3%, improving from -3%. The US will also publish Initial Jobless Claims for the week ended April 9, foreseen at 700K, and the March Industrial Production and Capacity Utilization.”

“A steeper decline could be expected on a break below 108.65, the immediate support.”