The USD/JPY looks exhausted on the short term and could drop in the coming days as the USDX has failed to take out a major dynamic resistance, the index is losing bullish momentum and could send the USD lower again versus its counterparts.
The pair has increased in the early morning, but the seller’s have taken full control and are leading the price lower, the rate has hit a strong static resistance, but has failed once again to close above this obstacle, has also failed to jump above the last week high from 107.48 level. The Japanese Yen could increase because the Japanese Trade Balance has increased from 0.29T to 0.33T, the surplus has increased much more and has exceeded the 0.24T estimate. However remains to see how the price will react tomorrow after the United States will release the economic data, the CB Consumer Confidence could drop from 98.0 to 95.6 points, while the Richmond Manufactuirng Index may increase a little from -7 to -4 points, a major disappointment could harm the USD, on the other hand the greenback could receive a helping hand from the New Home Sales which could increase from 551K to 560K, moreover the US Flash Services PMI is also expected to drop from 51.4 to 51.2 points, signaling that the service sector expansion could slow down.
The Japanese SSPI economic indicator could increase by 0.1%, less compared to the 0.2% in the previous reading period.