Forex: USD/JPY recovery capped by 20-hour SMA

FXstreet.com (Córdoba) - The US dollar continues to trade below the 98.00 mark versus the yen after the latest recovery attempt was capped by the 20-hour SMA at the 97.80 area following disappointing Chicago PMI data. USD/JPY slid back to the 97.50 area, where it is currently trading, still down 0.2% on the day.

According to Valeria Bednarik, chief analyst at FXstreet.com, the pair maintains the overall bearish tone according to the hourly chart, as price develops below 100 and 200 SMA's, while indicators hold in negative territory. "Gains above 98.00 had remained limited so far, suggesting more downward pressure ahead, with 96.70 as key support to follow, and probable bearish target for the upcoming sessions", Bednarik adds.