USD/JPY unable to regain the 107.00 threshold, risk skewed to the downside

USD/JPY trades around the 106.90 level, overall maintaining its bearish stance in the short-term as the pair is unable to sustain intraday gains above 107.00, FXStreet’s Chief Analyst Valeria Bednarik reports.

Key quotes

“Japan published the preliminary estimate of the July Jibun Bank Manufacturing PMI, which came in better than anticipated, printing at 42.6 also improving from the previous 40.1. The US will publish today the May Housing Price Index, and June Existing Home Sales.”

“The 4-hour chart shows that the intraday recovery stalled below a bearish 20 SMA, which remains below the larger ones. Technical indicators, in the meantime, bounced from near oversold levels, but lost their positive momentum within negative levels, indicating limited buying interest around the dollar. A break below 106.60 should signal a steeper decline in the days to come.”