USD/JPY finds support above 108.50 and erases losses
|- US Dollar weakens again across the board but holds steady against Japanese Yen.
- USD/JPY trapped in a small range near two-month highs.
The USD/JPY erased all the losses that followed the US Retail Sales report, and it trades at 108.75/80, flat for the day and off lows. The pair is following US equity prices and remains supported by the improvement in risk sentiment over the last days and the rebound in yields.
Data not helping US Dollar
On a quiet session so far, excluding GBP’s crosses, the USD/JPY is trapped in a 30-pip range. It peaked earlier today at 108.85 and bottomed after the release of US data at 108.55. It holds close to the two-month high it reached yesterday at 108.89.
Retail sales in September dropped for the first time in seven months showing numbers below expectations. The Greenback fell across the board after the report but modestly. Attention continues to be on trade talks between the US and China and the Brexit negotiations. Later today, there will be a briefing from the European Union, around 17:00 GMT.
Technical outlook
After yesterday’s breakout above 108.50, the USD/JPY holds bullish bias. Now the next strong resistance is seen around 109.00, followed by 109.25/30. If the pair drops below 108.45, the bullish pressure will likely ease. Below support levels might lie at 108.15 and 107.75.
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