USD/JPY consolidates below 109.50 ahead of US retail sales

USD/JPY extends the previous day’s lull performance and remains muted on Thursday.
US Dollar Index slips below 92.50 still recovering from cooler-than-expected US inflation data.
The Japanese Yen gains on its safe-haven appeal amid reduced risk appetite among investors.

Rekha Chauhan Independent Analyst

USD/JPY edges lower on Thursday in the initial Asian trading session. The pair trades in a very narrow trade range with no meaningful traction. At the time of writing, USD/JPY is trading at 109.35, down 0.01% for the day.

The depreciative move in the greenback keeps USD/JPY on the edge. The US Dollar Index (DXY), which tracks the performance of the buck against the basket of six major currencies trades lower below 92.50 with 0.16% losses.

The US benchmark 10-year Treasury yields rose 2.2 basis points to 1.30% ahead of the critical Retail sales data, due to be released today. The US Industrial Production grew 0.4% in August as compared to 0.8% in July whereas NY Business activity jumped 34.3 in September from 18.3 in August, much above the market forecast of 18.

Meantime, the US House of Representatives committee agreed on the legislation to raise taxes on the wealthy and corporations but remained divided on a provision to slash drug prices

On the other hand, the Japanese Yen gains on its safe-haven appeal. A Reuters poll revealed a majority of Japanese firms believe the world’s third-largest economy will recover to pre-pandemic levels in 2022.

On the data front, Japan recorded a trade deficit of ¥635.40 billion in August. The downbeat reading capped the gains for the domestic currency. As for now, traders are waiting for the US Retail Sales data and Initial Jobless Claims to gauge the market sentiment.

USD/JPY additional levels

USD/JPY

Overview
Today last price	109.38
Today Daily Change	0.01
Today Daily Change %	0.01
Today daily open	109.37

Trends
Daily SMA20	109.87
Daily SMA50	109.91
Daily SMA100	109.84
Daily SMA200	108.04

Levels
Previous Daily High	109.74
Previous Daily Low	109.11
Previous Weekly High	110.45
Previous Weekly Low	109.62
Previous Monthly High	110.8
Previous Monthly Low	108.72
Daily Fibonacci 38.2%	109.35
Daily Fibonacci 61.8%	109.5
Daily Pivot Point S1	109.07
Daily Pivot Point S2	108.78
Daily Pivot Point S3	108.44
Daily Pivot Point R1	109.7
Daily Pivot Point R2	110.04
Daily Pivot Point R3	110.33

Author

Rekha Chauhan

Independent Analyst

Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.

GBP/USD hits multi-week tops around 1.3560

GBP/USD gathers fresh steam and advances to new three-month peaks near the 1.3560 zone on Friday. Cable’s sharp move higher comes after three daily drops in a row and follows the increasing selling pressure hurting the Greenback.

EUR/USD pops to fresh two-month highs, targets 1.1600

EUR/USD advances markedly, revisiting the upper 1.1500s for the first time since mid-June. The pair’s sharp uptick comes on the back of a strong retracement in the US Dollar amid BoJ intervention chatter and despite steady uncertainty in the Middle East.

Gold picks up pace, approaches $4,400

Gold rebounds toward the $4,400 mark per troy ounce on Friday, reversing the previous day’s pullback. The precious metal’s recovery comes as fresh and intense weakness keep weighing on the US Dollar, while traders keep assessing easing expectations of an imminent Fed interest rate hike and the situation from the Middle East.

Pi Network Price Forecast: PI extends consolidation as bulls eye $0.10

Pi Network (PI) price holds steady on Friday, maintaining a consolidating tone for three consecutive days. Mild retail strength in the PI token remains stable, with Open Interest above $9 million, while social buzz eases. PI token’s technical outlook is mixed, as bearish momentum wanes to neutral, with bulls eyeing the $0.1000 psychological level.

Weekly focus: Some relief in US inflation concerns

Actual inflation data for July came out as expected with a 0.1% m/m increase in headline CPI and 0.2% excluding food and energy. Annual headline inflation remains too high at 3.4% and means that wage earners are experiencing stagnating spending power at best, and core inflation is a bit higher than the inflation target of two percent would suggest.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.