FxWirePro: USD/JPY takes a breather after 4 straight sessions of weakness, outlook bearish

USD/JPY chart - Trading View 

USD/JPY was trading 0.06% higher on the day at 104.80 at around 06:15 GMT, as the pair consolidates 4 straight sessions of weakness.

The US dollar remains on the back foot as Fed’s hint for another stress test for large banks and S&P 500 Futures decline 0.10% in the aftermath.

Further, data released earlier today showed Japan’s August month’s National CPI slipped to 0.2% YoY, missing forecasts at 0.6% and below the 0.3% previous reading.

Focus today remains on the US Michigan Consumer Sentiment Index for September. Analysts expect a reading of 75 versus 74.1 prior.

Technical bias is sharply bearish. ADX and MACD support weakness. Rising volatility to drive prices lower. 

The pair has broken major trendline support at 105.16 and we see scope for test of 103 levels. Bearish invalidation only above 200-DMA.