- 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|
|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.