The USDJPY is breaking through 100 to the downside as yen futures gain .19 percent in early trade. The dollar index is down slightly, -.05 percent.
Momentum began to die as the USDJPY hovered within 100.20s and was not able to challenge the key 100.61 mark. The 4H chart showed price action tapering from the top, and the pair is bouncing off 100 which is acting as minor support. Additional support should lie at the 20 EMA. However, a intraday target of 99.70-75 is very possible.
The -DMI spiked to the upside, and the ADX is beginning to tick downward.
The daily chart confirms the 99.70-75 intraday target through price action. The daily 20 EMA is slightly below which may provide a dynamic support. However, the next viable support on the daily chart is 99. USDJPY could trade down to these levels going into Wednesday’s core CPI and retail sales data. The FOMC will also be issued that afternoon.
The dollar has fallen out of favor with the continued QE pledge by Janet Yellen. Expect further dollar declines unless fundamentals dramatically change. Good data may boost the dollar, but it won’t turn off the Federal Reserve’s printing press from high to medium.