USD/JPY trying to hold above 110
|The greenback was broadly higher on Friday, pushing the dollar back above the 92.50 level, while the USDJPY pair managed to return above the important 110 mark.
Earlier today, US headline retail sales rose 0.6% MoM (versus -0.3% expected). However, the big June jump was offset by a big downward revision in May to -1.7% MoM (from -1.3%). Additionally, the control group retail sales rose from -1.4% to 1.1%.
Under the surface, motor vehicles sales, furniture, and building materials were the biggest losers.
From other news, the University of Michigan consumer confidence plunged from 85.5 to 80.8 in July, with both current conditions (84.5 vs. 88.6 prior) and hope (expectations tumbled from 83.5 to 78.4) deteriorating.
Just 30% of all consumers cited favorable home-buying conditions, the lowest level since September 1982. However, when asked to explain their reasoning, 71% mentioned high home prices, the highest recorded percentage. Finally, we note that short-term inflation expectations soared to their highest since June 2008.
The support now remains near 109.50, and as long as the greenback trades above it, the medium-term outlook seems bullish.
The next resistance for the pair could be at 110.50, followed by the selling zone near the 111 threshold.
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