FxWirePro- Currency Strength Index (4- Hour chart)- Currency pairs to watch (USCAD and EURJPY) for the day)
FxWirePro: USD/JPY Daily Outlook
Chart - Courtesy Trading View
USD/JPY was trading 0.11% lower on the day at 144.63 at around 13:10 GMT.
Hawkish comments by Fed officials overnight reaffirm the prospects for a more aggressive policy tightening, keeping downside in check.
World Bank’s (WB) downbeat economic forecasts for China and chatters that Chinese authorities called key market players to defend the equities tested market mood.
Markets look forward to speech from Fed Chairman Jerome Powell. Hopes of hawkish Powell keep USD buoyed.
On the data front, US Durable Goods Orders declined by 0.2% in August slightly better than market forecasts of -0.4% and the revised down prior reading of -0.1%.
Additionally, US CB Consumer Confidence improved for the second consecutive month to 108.00 for September versus 104.5 expected and 103.20 prior.
Major trend is still bullish, but bearish RSI divergence raises scope for some pullback. Break below 5-DMA will see dip till 21-EMA. Bullish invalidation below 21-EMA.