USD/JPY: Break below 104.90 to expose the 104.40 region

USD/JPY is trading around the 105.00 figure as the dollar remains the weakest ahead of the US Federal Reserve announcement later today and the preliminary estimate of Q2 GDP on Thursday. The pair could extend the decline towards 104.40 after reaching a fresh 4-month low at 104.76, FXStreet’s Chief Analyst Valeria Bednarik reports.

Key quotes

“Japan didn’t release macroeconomic data while the US will publish the June Goods Trade Balance and Pending Home sales for the same month. The focus, however, will be the US Federal Reserve decision on monetary policy. US policymakers are expected to maintain the current policy unchanged, although Powell’s speech could shed some light over future developments.”

“The 4-hour chart shows that the Momentum indicator recovers within negative levels, while the RSI indicator consolidates around 30. The 20 SMA maintains its strong bearish slope above the current level, currently around 105.45.”

“Renewed selling pressure below 104.90 should expose the 104.40 region, a strong static support level.”