USD/JPY to ease downside pressure above 108.50

USD/JPY extended its decline to 107.87, consolidating losses as bears are in charge. The pair is expected to retain its bearish stance, Valeria Bednarik, Chief Analyst at FXStreet, reports.

Technical indicators remain within negative levels

“The Japanese macroeconomic calendar remained empty, while the US released MBA Mortgage Applications for the week ended April 16, which surged 8.6% after falling 3.7% in the previous one. The focus will be on stocks’ behavior as the earnings season kicked in.”

“The USD/JPY pair is technically bearish, although the momentum is missing in the near-term. The 4-hour chart shows that sellers continue to surge around a bearish 20 SMA, while the longer moving averages gain bearish traction above it.” 

“Further declines are to be expected as long as the USD/JPY pair remains below the 108.50 price zone.”