USD/JPY continues slide as economy questioned. The pair nears 146.00

<p>USD/JPY is having a look at 146.00 after touching a 2023 high of 147.36 earlier today. It's a rapid turnaround as the market re-evaluates the path of Federal Reserve rates and the strength of the US economy.</p><p>The drop of more than 120 pips threatens a spinning top formation on daily and an outside reversal.</p><p>US job openings fell sharply in June and that's an indicator the Fed watches closely. At the same time, US consumer confidence also posted a surprise fall, albeit from elevated levels.</p><p>The market is sensing clouds on the US horizon and that will add to the reasons for Powell to pause rate hikes in September. I fully expect him to continue to signal a hiking bias but by the time the November meeting comes around, it should be clear that growth is slumping.</p><p>Another good look at the recent trend is the Citi US economic surprise index and it's showing that data is increasingly missing the expectations of economists.</p><p> That sets up some major releasesthis week, including ADP employment tomorrow, the PCE report Thursday and non-farm payrolls on Friday.</p>

This article was written by Adam Button at www.forexlive.com.