USD/JPY extends its decline. Economists at OCBC Bank analyze the pair’s outlook.

Risks skewed to the downside

Softer used car prices somewhat gave markets the confidence that US CPI could come in softer on Wednesday and the markets are front-loading expectations for UST yields to come off. 

Bias remains for downside play. 

Support at 139.90 (50-DMA), 138.30 (38.2% fibo retracement of 2023 low to high). Resistance at 142.75 (21-DMA).

See – USD/JPY: Yen forecasts softened on anticipation that a policy tweak is likely to be delayed – Rabobank