USD/JPY: Neutral-to-bearish in the short-term

The USD/JPY pair struggles to retain the 107.00 level and could accelerate its decline, according to FXStreet’s Chief Analyst Valeria Bednarik.

Key quotes

“Japan published the April Producer Price Index, which was down in the month by 1.5%. The annual reading came in at -2.3%, worse than anticipated.” 

“The US will publish April Retail Sales, seen down by 8.6% in the month. Industrial Production in the same month is foreseen at -11.4%. It will also publish the preliminary estimate of the Michigan Consumer Sentiment Index for May, expected at 68 from 71.8.”

“The 4-hour chart shows that the USD/JPY pair is trading between bearish moving averages, while technical indicators have turned lower after failing to overcome their midlines.”