USD/JPY: after limited recovery, consolidates near weekly lows
|The US dollar trimmed some of its losses against the yen during the American session but is still down for the day and headed toward the first weekly loss after gaining during the previous four.
USD/JPY consolidates below 112.00
USD/JPY bottomed after the release of US data at 111.67, the lowest in two weeks. Reports included the CPI that rose 0.5% in September (against the +0.6% expected) while retail sales jumped 1.6% (vs 1.7%). The lower-than-expected inflation reading weakened the greenback across the board. The US dollar received some support later from the University of Michigan Consumer Sentiment survey that showed its headline rising to 101.1, its highest level in more than 13 years.
At the moment of writing the pair is hovering around 111.90 consolidating modest daily losses and almost 80 pips below the level it closed last week. A reversal in the price of US bonds pushed the pair to the downside. Today the US 10-year yield dropped further today after US data to 2.277%, the lowest since September 27. Last Friday it peaked at 2.40% (5-month high).
US Retail Sales: Strong auto sales drive September growth - Wells Fargo
US CPI and retail sales support December rate hike story - ING
Levels to watch
The pair is holding below the 112.20 support area signaling further weakness ahead. The next support could be seen at 111.45 (Sep 25 & 26 low), followed by 111.05 (Sep 20 low). On the upside, resistance levels might be located at 112.10 (Oct 12 low), 112.30 (Oct 13 high) and 112.60 (Oct 11 high).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.