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USDJPY : Following Downward Sloping Channel

US dollar was trading lower against some of its major counterparts however posted some gains against Japanese Yen today after the Bank of Japan decided to maintain its monetary easing program. The central bank was widely expected to continue to expand the monetary base at a pace of 60 trillion yen to 70 trillion yen per year.

A separate report on PPI showed that the Producer Price Index for Final demand fell .2% in May missing the economist’s expectations for an increase of .1%. The decline in index came from the decline in the final demand services and final demand goods.Prices for final demand services fell down .2% in May which is the first decrease since .3% drop in February.The Final Demand Goods Index fell .2% in May, the largest decline since .7% drop in April 2013. The Core PPI which excludes food and energy remain unchanged following advances of .3% in April and March.

(USDJPY : 4 Hour Chart)

On the 4 Hour Chart, the pair seems like following a downward sloping channel or a descending triangle pattern. The missing US data should pull the pair down from the falling resistance trend line. However if the pair breaks the resistance trend line of the channel it will give a bullish bias on the pair.