FxWirePro: USD/JPY hits fresh 6-week lows below daily cloud, Dollar on the back foot ahead of crucial GDP data

USD/JPY chart - Trading View 

USD/JPY is extending bearish streak for the 6th straight session, bias remains bearish.

The major was trading 0.31% lower on the day at 106.54 at around 06:10 GMT, momentum with the bears.

The U.S. dollar remains on the back foot across the board ahead of the crucial US GDP data and FOMC meeting.

The initial estimate of US Gross Domestic Product for the first quarter is projected to show an annualized contraction of around 4%. 

The Federal Reserve will probably leave its interest rates unchanged. Focus will be on forecasts for growth, inflation, employment, and interest rates, as well as the tone by Jerome Powell.

USD/JPY has slipped below daily cloud raising scope for further weakness. Analysis of GMMA indicator shows major and minor trend are strongly bearish.

MACD and ADX also support weakness. Volatility is rising on the daily and weekly charts. Dip till 61.8% Fib at 105.20 likely.

21-EMA is strong resistance at 107.67. Bearish invalidation only above 200-DMA.