Declines towards 140.00 ahead of US core PCE Inflation data

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<li><strong>USD/JPY continues to decline further towards 140.00 amid soft US Dollar.</strong></li>
<li><strong>Investors await the US core PCE price index data for further guidance.</strong></li>
<li><strong>USD/JPY may find an intermediate cushion near upward-sloping trendline.</strong></li>
<p>The USD/JPY pair consolidates in a tight range near 142.00 after a sharp correction ahead of the United States core Personal Consumption Expenditure (PCE) price index data for November, which will be published at 13:30 GMT.</p>
<p>The core <a href="">PCE</a> inflation report is expected to remain soft as the Federal Reserve (Fed) has been keeping interest <a href="">rates</a> unchanged in the range of 5.25-5.50%. The downside in the major would continue if the underlying inflation turns out softer-than-anticipated. Meanwhile, deepening rate cut expectations from the Federal Reserve (Fed) have weighed heavily on the US Dollar Index (DXY). The USD Index has refreshed its four-month low around 101.55.</p>
<p>On the Tokyo front, Japan’s National <a href="">Consumer Price Index</a> (CPI) has remained above the 2% target for the 20<sup>th</sup> time in a row.  The Bank of Japan (BoJ) is expected to continue its ultra-dovish policy stance till wage growth in the Japanese economy gets high enough to keep inflation comfortably above 2%.</p>
<p>USD/JPY is consistently declining from more than one month. The downside momentum accelerated after a bearish crossover from the 20 and 50-day Exponential Moving Averages (EMA), which happened around 148.80. The asset is expected to decline further towards the upward-sloping trendline plotted from January 16 low at 127.22.</p>
<p>The Relative Strength Index (RSI) (14) is oscillating in the bearish range of 20.00-40.000, pointing to continuation of a downside momentum.</p>
<p>Fresh downside would appear if the asset drops below December 14 low near 141.00. This would drag it towards the upward-sloping trendline near 139.40, followed by July 28 low near 138.00.</p>
<p>In an alternate scenario, a recovery move above December 19 high near 145.00 would drive the asset towards December 11 high around 146.60, followed by December 6 high near 148.00.</p>
<h2>USD/JPY daily chart</h2>
<p><a href="" target="_blank" rel="noopener"><img decoding="async" src="" style="width: 600px; height: 275px;" /></a></p>
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<br /><a href="">Source link </a></p><p>The post <a href="">Declines towards 140.00 ahead of US core PCE Inflation data</a> first appeared on <a href="">Forex Trader Hub</a>.</p>

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