USD/JPY consolidates Tuesday's gains, trades around 108.70 ahead of US data

Market mood turns sour amid Brexit uncertainty on Wednesday.
US Dollar Index stays relatively calm below 98.50.
Coming up: September retail sales data from the United States (US).

Eren Sengezer FXStreet

The USD/JPY pair advanced to its highest level since early August at 108.90 on Tuesday boosted by the upbeat market sentiment amid hopes of the European Union (EU) and the United Kingdom (UK) reaching a Brexit deal ahead of the October 31st deadline.

Brexit headlines continue to impact the risk sentiment

However, Wednesday's headlines on Brexit revealed that there is a possibility that sides will not be able to finalize an agreement before the end of the day and caused investors to start moving towards safe-haven assets such as the JPY. As of writing, the pair was down 0.15% on the day at 108.67.

In the second half of the day, the retail sales data from the United States (US), which is expected to show an increase of 0.3% on a monthly basis in September, will be looked upon for fresh impetus.

More importantly, markets will remain focused on the developments surrounding Brexit talks and changes in the market mood. At the moment, the S&P 500 Futures is down 0.3% on the day, suggesting that Wall Street's main indexes are likely to start the day in the negative territory. There won't be any significant macroeconomic data releases from Japan in the remainder of the week.

Technical levels to watch for

USD/JPY

Overview
Today last price	108.65
Today Daily Change	-0.21
Today Daily Change %	-0.19
Today daily open	108.86

Trends
Daily SMA20	107.72
Daily SMA50	107.05
Daily SMA100	107.57
Daily SMA200	109.07

Levels
Previous Daily High	108.9
Previous Daily Low	108.15
Previous Weekly High	108.63
Previous Weekly Low	106.65
Previous Monthly High	108.48
Previous Monthly Low	105.74
Daily Fibonacci 38.2%	108.62
Daily Fibonacci 61.8%	108.44
Daily Pivot Point S1	108.38
Daily Pivot Point S2	107.89
Daily Pivot Point S3	107.63
Daily Pivot Point R1	109.12
Daily Pivot Point R2	109.38
Daily Pivot Point R3	109.87

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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