USD/JPY finds support above 110.50

Matías Salord FXStreet

USD/JPY rebounded and climbed back above 111.00. The pair dropped earlier to 110.60 after the greenback weakened following the US Retail Sales report. During the last hours, the US dollar recovered strength as US bond yields turned higher.

US: Not good economic data

While retail sales in August dropped 0.2% against expectations of a modest rise the US consumer sentiment index measured by Reuters/Michigan came in a 95.3 against an expected reading of 95.1.

The Empire State Manufacturing Index eased from 25.5 to 24.4 in September, a smaller-than-expected decline. Industrial production contracted 0.9% in August; market consensus pointed to a 0.1% increase.

Today’s data overall came in below expectations. Recent storms in the US could have influenced on the numbers.

US Retail Sales: Numbers affected by storm - Wells Fargo

Despite the reports, USD/JPY remained in positive territory for the day at all times supported by the weak yen. The Japanese currency is among the worst performers on Friday (and also for the week) affected by rising US yields.

Technical levels

To the upside, the immediate resistance is now seen around daily highs at 111.30/35 followed by 111.55 (Jul 19 low) and 111.70 (Jul 27 high). On the flip side, support could be located at 110.60 (US session low), 110.30 and 109.90 (Sep 13 low).

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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