USD/JPY bulls fought back to the 110 handle despite N.Korea risk
|Currently, USD/JPY is trading at 110.23, down -0.06% on the day, having posted a daily high at 110.31 and low at 109.55.
USD/JPY gave some profits to the bears in early Asia when the N.Korean news crossed the wires, sending the usual safe haven suspects loose and seeing territory in the yen up to 109.55 vs the greenback before bouncing back.
North Korea's missile passed over Hokkaido, Japan - NHK
The data overnight in US CPI was supportive for the greenback with inflation beat expectations in August, up by 1.9% (y/y). We now look ahead to the key data release from the US session in an otherwise, potentially, a quiet day ahead.
the main focus will be with August retail sales that are expected to increase just 0.1% following a 0.6% jump in July, as noted by analysts at Westpac who forecasts a 0.3% gain with stronger consumption growth continuing into Q3.
"However, there is also an additional risk to this month’s release due to the effect of Hurricane Harvey which came very late in the month," argued the analysts at Westpac. We also have Aug industrial production that is expected to rise 0.1%. and Sep University of Michigan's consumer sentiment that is anticipated to maintain a positive level at 96.5.
From a technical point of view, Valeria Bednarik, chief analyst at FXStreet explained that the pair seems poised to correct lower, although the overall bullish stance prevails, as in the 4 hours chart, the price is well above its 100 and 200 SMAs, which slowly gain upward strength, while the Momentum indicator retreats strongly within positive territory, as the RSI pulls down from overbought readings.
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