USD/JPY: Bears hold the grip while below 104.95

USD/JPY trades uneventfully in the 104.70 region as the consolidative phase continues. The pair lacks directional strength until a break of either 104.40 or 104.95 is seen, Valeria Bednarik, Chief Analyst at FXStreet, briefs. 

Key quotes

“US Federal Reserve chief’s Jerome Powell said that rates would remain low as long as inflation does not reach the central bank’s goal. He added that there’s a long way ahead of full employment, another condition to touch rates.”

“The USD/JPY pair is stuck around the 50% retracement of its latest bullish run, maintaining a sour tone. Further declines are expected on a break below 104.40, the weekly low and a Fibonacci support, while bears will have fewer chances on a break above 104.95.”