USD/JPY is at risk of extending its decline on a break below 109.50

The USD/JPY pair keeps trading below 110.00, consolidating its latest losses, and at risk of falling further, according to FXStreet’s Chief Analyst Valeria Bednarik. 

Japan Leading Economic Index improved to 99.7 in February, missing expectations

“Japan published the preliminary estimate of the February Leading Economic Index, which improved from 98.5 to 99.7 but missed the market’s expectations of 100.7. The Coincident Index for the same period contracted from 90.3 to 89. The US will publish the February Trade Balance, expected to post a deficit of $-70.5 billion.”

“The USD/JPY pair is at risk of extending its decline according to near-term readings. A steeper decline could be expected on a break below 109.50, the immediate support level.”