USD/JPY is currently residing inside a corrective structure after breaking below the important level of 111.60. Today we have JPY Household Spending Report which is expected to show a positive result at -0.7% which previously was at -1.3%, Unemployment Rate is expected to be unchanged at 2.8% and Retail Sales is expected to have a slight increase to 2.2% which previously was 2.1%. On the other hand, USD have CB Consumer Confidence report which is expected to show a slight decrease to 120.1 which previously was at 120.3, Core PCE Price Index is expected to show a positive value at 0.1% which previously was at -0.1% and Personal Spending is also expected to show an increase of 0.4% which previously was at 0.0%. Overall, both currencies have a good number of economic events today which is expected to bring in a good amount of volatility in the market. JPY is currently quite stronger than USD and if the JPY reports come positive which will be announced way before the USD reports the market is expected to show some gains on the JPY side after the JPY reports. If USD fails to show positive reports yesterday, further gains on JPY side is expected in this pair.
Now let us look at the technical view, the price is currently below the resistance level of 111.60 after the bearish pressure observed on Friday. As of the recent impulsive bearish pressure, further downside move is expected in this pair with a target towards 110.10. As the price remains below 111.60 we are bearish on this pair.
