USD/JPY gains some traction, above 108.00 mark post-US retails sales


  • The USD remains on the defensive after mixed US retail sales data.
  • Risk-on mood/rising US bond yields should help limit the downside.
  • Focus shifts to next week’s key event risks - FOMC and BoJ meetings.

The USD/JPY pair quickly bounced around 15-pips from daily lows and is currently placed in the neutral territory, around the 108.10 region post-US retail sales data.
 
The pair continued with its struggle to sustain/built on the recent positive momentum further beyond the 100-day SMA barrier and witnessed a modest intraday pullback amid the prevailing selling bias surrounding the US Dollar, which dragged the pair back below the 108.00 handle.
 
However, a strong follow-through pickup in the US Treasury bond yields coupled with encouraging trade-related developments continued weighing on the Japanese Yen's relative safe-haven status and helped limit the intraday downtick from multi-week tops set earlier this Friday.

Mixed US retail sales fail to provide any impetus

Meanwhile, the latest leg of a sudden pick up over the past hour or so came after stronger-than-expected data, showing that headline retails sales rose 0.4% as compared to 0.2% expected. Adding to this, the previous month's reading was also revised higher to 0.8% from 0.7% reported previously.
 
The positive reading, to a larger extent, was negated by a slight disappointment from core retail sales figures, which remained flat month-over-month in August as against the previous month's strong growth of 1.0%. On the other hand, the closely watched Retail Sales Control Group matched consensus estimates and rose 0.3%.
 
With Friday's US macro data out of the way, it will now be interesting to see if the pair is able to attract any fresh buying interest or continues with its subdued/range-bound trading action as the focus now shifts to next week's key event risks - the FOMC decision on Wednesday and BoJ meeting on Thursday.

Technical levels to watch

USD/JPY

Overview
Today last price 107.96
Today Daily Change -0.14
Today Daily Change % -0.13
Today daily open 108.1
 
Trends
Daily SMA20 106.58
Daily SMA50 107.16
Daily SMA100 108.15
Daily SMA200 109.45
Levels
Previous Daily High 108.19
Previous Daily Low 107.52
Previous Weekly High 107.23
Previous Weekly Low 105.74
Previous Monthly High 109.32
Previous Monthly Low 104.45
Daily Fibonacci 38.2% 107.93
Daily Fibonacci 61.8% 107.78
Daily Pivot Point S1 107.68
Daily Pivot Point S2 107.27
Daily Pivot Point S3 107.01
Daily Pivot Point R1 108.36
Daily Pivot Point R2 108.61
Daily Pivot Point R3 109.03

 

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD drops below 1.11 amid upbeat US data, trade concerns

EUR/USD is trading below 1.11 after robust US housing figures and solid consumer sentiment figures were published. Earlier, the common currency suffered from the concerns of new US tariffs on the EU.

EUR/USD News

GBP/USD down 100 pips after UK retail sales badly disappoint, amid USD strength

GBP/USD has plunged below 1.3050 after UK retail sales badly disappointed with a fall of 0.6% in December, on top of downward revisions. Odds of a BOE cut have risen.

GBP/USD News

Crypto market hyperspace mode On

The secondary actors of the crypto-sphere awaken and rally hard. Leading coins battle with greater resistance at the gates of a full bullish market. The only risk is an over-shoot, but that sentiment remains neutral.

Read more

Gold: Sustained move beyond 200-hour SMA sets the stage for further gains

Gold edged higher through the mid-European session on Friday and is currently placed near the top end of its weekly trading range, around the $1560 region.

Gold News

USD/JPY: Losing bullish momentum but retaining gains

Chinese encouraging data kept markets in risk-on mode at the beginning of the day. The US January Michigan Consumer Sentiment Index is seen at 99.3, matching December figure. USD/JPY holding at the upper end of its weekly range could correct lower.

USD/JPY News

Forex MAJORS

Cryptocurrencies

Signatures