USD/JPY has a limited bearish potential despite easing from recent tops

The USD/JPY pair eased modestly during Asian trading hours, currently trading around the 109.70 level, as buyers defend 109.60 but with little conviction, FXStreet’s Chief Analyst Valeria Bednarik briefs.

Japanese data was mixed, although long-term measures were encouraging

“Japanese data released at the beginning of the day was mixed. March Retail Trade was up 12% YoY, While Large Retailer Sales surged 15.5%. The preliminary estimate of April Industrial Production came in at 2.5% MoM, missing expectations, although the annual reading jumped to 15.4%. Finally, the March Consumer Confidence Index contracted to 34.1 against the expected advance to 35.3.”

“ USD/JPY is finding buyers in the 109.60 price zone, although bounces are modest. Nevertheless, the risk remains skewed to the upside in the near-term.”