USD/JPY clings to small daily gains above 107.00
|- USD/JPY broke above 107.00 but struggled to preserve its momentum.
- US Dollar Index stays in negative territory below 96.00.
- Wall Street's main indexes erase portion of early losses.
The USD/JPY pair spent the first half of the day moving sideways below 107.00 but gained traction in the early trading hours of the American session. After advancing to a daily high of 107.21, however, the pair lost its momentum and was last seen trading at 107.08, where it was up 0.15% on the day.
USD continues to react to Wall Street
Earlier in the day, the data published by the US Census Bureau showed that Retail Sales in June increased by 7.5% to beat the market expectation of 5%. Nevertheless, this upbeat data failed to provide a boost to the market sentiment and Wall Street's main indexes started the day deep in the negative territory.
Although the greenback capitalized on risk-off flows with the US Dollar Index (DXY) turning flat near 96.00, a rebound witness in US stocks made it difficult for the USD to preserve its strength. At the moment, the DXY is down 0.12% on the day at 95.92 and the S&P 500 Index, which was down nearly 0.9% in the early trade, was losing 0.45%.
There won't be any significant macroeconomic data releases in the remainder of the day or the Asian session on Friday and the risk sentiment is likely to continue to impact the pair's movements.
Technical levels to watch for
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