How to trade USD/JPY ahead of US Retail Sales data
|The U.S. Dollar (USD) inched higher against the Japanese Yen (JPY) last week, increasing the price of the USDJPY pair to more than 109.00, ahead of the release of the U.S. Retail Sales news. The technical bias remains bullish since the pair printed a higher low in the recent downside move.
Technical analysis
As of this writing, the USDJPY pair strengthens around 109.73. The pair might face some hurdles near the listed price levels.
Short-term resistance levels
110.14 - the high of February 09, 2020.
111.00 – the psychological number.
111.26- the upper trendline arm.
Image Source: MetaTrader4
On the downside, the pair might find some support near the given price levels.
Short-term support levels
109.19 – the low of June 19, 2021.
108.58 – the horizontal support.
107.98 - the Fibonacci retracement (61.8%).
US Retail Sales news
The U.S. Census Bureau is scheduled to release numbers for the U.S. Retail Sales data Tomorrow (June 15, 2021). According to the average estimate of economists, the U.S. retail sales data might register a reading of -0.8% in May, as compared to the reading of 0%, in the month before.
The U.S. Retail Sales data is the estimate of the total sales volume of the retail sector over a given period. The change in the percentage of monthly sales shows an increase or decrease in the total sales volume of the retail sector. Not to mention, U.S. Retail Sales data is considered a major economic indicator since it helps economists to project consumer spending patterns in the coming days. Generally speaking, a high reading strengthens the U.S. Dollar and suggests a bullish trend for the USDJPY pair and vice versa.
Conclusion
Considering the price movement of the pair over the past few days, it may be a better option in the short term if the USDJPY pair was bought at around 109.19. Due to the volatile nature of the market, however, prices may change and lead to different outcomes.
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