USD/JPY: Loss of critical support at 108.90 to increase bearish pressure

The dollar advanced this Tuesday, pushing USD/JPY towards the 109.50 price zone, from where it currently retreats. According to FXStreet’s Chief Analyst Valeria Bednarik, the risk remains to the downside.

USD/JPY maintains its bearish stance in the near-term

“Japan published its Q1 Gross Domestic Product, which came better than anticipated, printing at -1% QoQ.  The country’s trade balance posted a surplus of ¥289.5 billion in April, while May’s Eco Watchers Survey indicated a better business sentiment, as the assessment of the current situation improved to 38.1 while the outlook jumped to 47.6.”

“The USD/JPY pair is technically neutral and at risk of falling further in the near-term. The bearish case would be firmer on a break below 108.90, while bulls could have a chance of an advance beyond the 109.60 resistance level.”