The U.S. Dollar (USD) inched higher against the Japanese Yen (JPY) last week, increasing the price of the USDJPY pair to more than 109.00, ahead of the release of the U.S. Retail Sales news. The technical bias remains bullish since the pair printed a higher low in the recent downside move.

Technical analysis 

As of this writing, the USDJPY pair strengthens around 109.73. The pair might face some hurdles near the listed price levels.

Short-term resistance levels

110.14 - the high of February 09, 2020.

111.00 – the psychological number.

111.26- the upper trendline arm.

USDJPY

Image Source: MetaTrader4

On the downside, the pair might find some support near the given price levels. 

Short-term support levels

109.19 – the low of June 19, 2021.

108.58 – the horizontal support.

107.98 - the Fibonacci retracement (61.8%).

US Retail Sales news

The U.S. Census Bureau is scheduled to release numbers for the U.S. Retail Sales data Tomorrow (June 15, 2021). According to the average estimate of economists, the U.S. retail sales data might register a reading of -0.8% in May, as compared to the reading of 0%, in the month before.

The U.S. Retail Sales data is the estimate of the total sales volume of the retail sector over a given period. The change in the percentage of monthly sales shows an increase or decrease in the total sales volume of the retail sector. Not to mention, U.S. Retail Sales data is considered a major economic indicator since it helps economists to project consumer spending patterns in the coming days. Generally speaking, a high reading strengthens the U.S. Dollar and suggests a bullish trend for the USDJPY pair and vice versa.   

Conclusion

Considering the price movement of the pair over the past few days, it may be a better option in the short term if the USDJPY pair was bought at around 109.19. Due to the volatile nature of the market, however, prices may change and lead to different outcomes.

Trading foreign exchange, indices and commodities, on margin, carries a high level of risk and may not be suitable for all individuals. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange or other markets you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some, or all, of your initial investment. Therefore you should not invest money that you cannot afford to lose. Past performance is not a guarantee of future results. No guarantee is being made that any individual will be able to replicate our past performance results.

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