USD/JPY drops below 109.80 after uninspiring US data

US Dollar Index edges lower after dismal data.
10-year US Treasury bond yield extends slide on Friday.
Coming up: UoM Consumer Confidence data from US.

Eren Sengezer FXStreet

The USD/JPY pair lost nearly 15 pips with the initial reaction to Retail Sales and Industrial Production data from the US and touched a session low of 109.75 before recovering slightly. As of writing, the pair was trading at 109.78, down 0.03% on a daily basis.

DXY turns south after US data

The data published by the US Census Bureau on Friday revealed that Retail Sales in January increased by 0.3%. Although this reading matched the market expectation, further details of the report showed that the Retail Sales Control Group slumped to 0% and fell short of analysts' estimate of +0.3% to weigh on the greenback.

According to the Federal Reserve's monthly report, Industrial Production in the US contracted 0.3% in January compared to experts' forecast for a decline of 0.2%.

The US Dollar Index (DXY), which touched a fresh multi-month high of 99.16 earlier in the day, lost its traction in the early American session and was last down 0.08% on the day at 99.03.

In the meantime, the 10-year US Treasury bond yield is down 2.4% on the day to force the pair to stay in the negative territory. Investors will also be watching the University of Michigan's Consumer Confidence Index data Wall Street's performance in the remainder of the session.

Technical levels to watch for

USD/JPY

Overview
Today last price	109.8
Today Daily Change	0.02
Today Daily Change %	0.02
Today daily open	109.78

Trends
Daily SMA20	109.51
Daily SMA50	109.32
Daily SMA100	108.92
Daily SMA200	108.38

Levels
Previous Daily High	110.12
Previous Daily Low	109.62
Previous Weekly High	110.02
Previous Weekly Low	108.32
Previous Monthly High	110.29
Previous Monthly Low	107.65
Daily Fibonacci 38.2%	109.81
Daily Fibonacci 61.8%	109.93
Daily Pivot Point S1	109.56
Daily Pivot Point S2	109.34
Daily Pivot Point S3	109.06
Daily Pivot Point R1	110.06
Daily Pivot Point R2	110.34
Daily Pivot Point R3	110.57

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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