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


Today last price 107.96
Today Daily Change -0.14
Today Daily Change % -0.13
Today daily open 108.1
Daily SMA20 106.58
Daily SMA50 107.16
Daily SMA100 108.15
Daily SMA200 109.45
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




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