USD/JPY: holding at daily lows, bearish below 106.25
|USD/JPY Current price: 106.43
- USD/JPY confined to a tight range but pressured by US political uncertainty.
- US Retail Sales need to impress big to offset the sour mood.
The USD/JPY pair hovers near its daily low in the 106.40 region, having been trading uneventfully ever since the day started. Softer Asian equities kept the yen up against the greenback, although there was no interest in the pair ahead of US Retail Sales figures, particularly as there weren't fresh news coming from Japan to trigger some action overnight. The pair attempted to regain the 107.00 level on Tuesday, but US President Trump's decision to fire another advisor triggered risk-aversion benefiting the Japanese currency.
The pair is neutral-to-bearish ahead of US data, as it is unable to gain traction above a directionless 100 SMA, while technical indicators hold right below their mid-lines, without enough directional strength to confirm an upcoming decline. This week low comes at 106.25, being the immediate support, with an increasing bearish potential on a break below it. Approaches to the 107.00/20 region, on the other hand, will be probably be seen as selling opportunities.
Support levels: 106.70 107.00 106.60
Resistance levels: 106.25 105.90 105.55
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