USD/JPY recovers early lost ground, back around 105.40 region post-US data

  • The emergence of some fresh selling around the USD exerted pressure on USD/JPY.
  • The USD gained some respite following the release of upbeat US Retail Sales data.
  • Fading safe-haven demand undermined the JPY and further extended some support.

The USD/JPY pair reversed an intraday dip to the 105.20-15 region and moved to the top end of its daily trading range following the release of US monthly retail sales figures.

The pair met with some fresh supply on the last trading day of the week and eroded a part of the previous day's goodish bounce from the vicinity of the key 105.00 psychological mark. The emergence of some fresh selling around the US dollar was seen as a key factor exerting pressure on the USD/JPY pair.

The USD gained some traction in reaction to stronger-than-expected US Retail Sales data. In fact, the headline sales unexpectedly recorded a strong growth of 1.9% in September. Adding to this, Core Retail Sales and the closely watched Retail Sales Control Group also came in better-than-expected, albeit provided some respite to the USD bulls.

Apart from this, indications of a strong opening in the US equity markets undermined demand for the safe-haven Japanese yen and further contributed to the USD/JPY pair’s intraday bounce of around 20 pips. The uptick, however, lacked any strong follow-through, warranting some caution before positioning for any further appreciating move.

Friday's US economic docket also features the release of Industrial Production data and the preliminary estimate of the October Michigan Consumer Sentiment Index. Given that the focus remains on developments surrounding additional US fiscal stimulus, the data is unlikely to provide any impetus and pass largely unnoticed.

Technical levels to watch


Today last price 105.36
Today Daily Change -0.08
Today Daily Change % -0.08
Today daily open 105.44
Daily SMA20 105.42
Daily SMA50 105.78
Daily SMA100 106.42
Daily SMA200 107.4
Previous Daily High 105.49
Previous Daily Low 105.07
Previous Weekly High 106.11
Previous Weekly Low 105.28
Previous Monthly High 106.55
Previous Monthly Low 104
Daily Fibonacci 38.2% 105.33
Daily Fibonacci 61.8% 105.23
Daily Pivot Point S1 105.17
Daily Pivot Point S2 104.91
Daily Pivot Point S3 104.75
Daily Pivot Point R1 105.59
Daily Pivot Point R2 105.75
Daily Pivot Point R3 106.01



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