USD-JPY Weekly Analysis for June 7th - 11th Japan's April yearly CPI negative in headline is a major

Previous Fed‘s minutes once more confirmed market sensitivity to rate indications from the central bank and traders’ fears of not partaking in the possible gush in interest rates and the dollar when that initial sign of a change in policy attains.

Thursdays trading overturned Wednesday's deductions.

The USD-JPY stirred down about 15 points in the Asian and European timeframe on Friday, as the dollar lost battle against many of the majors but not all, with the euro as the principal exclusion.

In economic rating, Japanese figures continue to dishearten.

GDP, Gross Domestic Product, in the first three months of the year let fall bottomless into shrinkage than anticipated in the annualized and quarterly data - 5.1% and 1.3%.

Imports and exports activities in April were the only cheerful spot, climbing 12.8% and 38%, much more than was projected. Also, Consumer prices sustained their deflationary curve last month.

USD-JPY viewpoint

It is tough for USD-JPY traders not to be continually cautious of the US interest rates, questioning when, perhaps unintentionally, the Federal Reserve will release the yield spirit.

US actions remain the determining influence for the USD-JPY. Increasing US interest rates could effortlessly drive the USD-JPY back to 115.00.

The doleful inflation act in Japan may drive the Bank of Japan to action at its June 17 meeting, the outlook of such will keep an offer under the USD-JPY.

The USD-JPY remains entrenched in the tight 108.60-109.70 of the past five to six weeks without any instant cause for travel.

USD-JPY Technical Analysis

With two exclusions the USD-JPY has been trading a slim 108.60–109.70 range since early March. The base of the head-and-shoulder formation wedge from March and April at 109.70 has been the boundary with support at 108.60. The consolidation is exactly portrayed by the USD-JPY move on Wednesday, May 12 when US April CPI was released to be 4.2%, far above the 3.6% predicted. The price action that day underlines the market attention on US rates and the eventual course of yields and the USD-JPY itself.

Momentum pointers offer minimal data in the present situation. The Relative Strength Index and the True Strength Index are almost at midpoint. Also, the MACD is presenting slight indications in this month of May.

With the deficiency of momentum, support and resistance lines take superiority supported by the general bias higher. The neighboring lines above and below have been tried several times. A trivial edge has to be credited to support since it looks doubtful that the US economy will worsen sufficiently to push the USD-JPY below 108.00.

Resistance: 109.20, 109.70, 110.20, 110.75

Support: 108..60, 108.40, 107.90, 107.00

USD-JPY Sentimental View

The bearish viewpoints expressed in the charts are, bearing in mind the imperfect downside consolidation, really signs of continuous ranging, or the deficiency of momentum. Markets anticipate a resolve of the fundamental course of the US economy.