USD/JPY retreats from multi-month highs, trades above 110 ahead of US data dump

Major European equity indexes register decisive gains on Friday.
US Dollar Index rebounds to 97.50 area ahead of mid-tier data releases.
10-year US Treasury bond rises for second straight day.

Eren Sengezer FXStreet

The USD/JPY pair climbed to its highest level since mid-May at 110.29 during the Asian trading hours as the positive market sentiment made it difficult for the safe-haven JPY to find demand. The upbeat macroeconomic data releases from China eased concerns over a global economic slowdown and allowed risk-on flows to dominate the markets. Industrial Production and Retail Sales both rose more than expected in 2019 in China and the economy expanded 6% as expected.

Reflecting the heightened optimism, major European equity indexes are adding between 0.65% and 1% on the day and the 10-year US Treasury bond yield, which closed the previous day 1.35% higher, is up 0.5%.

US Dollar Index gains traction

On the other hand, the broad-based selling pressure surrounding major European currencies help the JPY stay resilient against the USD with the EUR/JPY and the GBP/JPY pairs dropping 0.2% and 0.3%, respectively. Nevertheless, the USD is also taking advantage of this situation and keeping the pair afloat above the 110 mark.

In the second half of the day, Industrial Production, UOM Consumer Confidence Index, Housing Starts and Building Permits data from the US will be looked upon for fresh impetus. Ahead of these data, the US Dollar Index is up 0.2% on the day at 97.50. FOMC members Quarles, Bowman and Harker will be delivering speeches during the American trading hours as well.

Technical levels to watch for

USD/JPY

Overview
Today last price	110.14
Today Daily Change	0.00
Today Daily Change %	0.00
Today daily open	110.14

Trends
Daily SMA20	109.22
Daily SMA50	109.07
Daily SMA100	108.5
Daily SMA200	108.57

Levels
Previous Daily High	110.18
Previous Daily Low	109.85
Previous Weekly High	109.69
Previous Weekly Low	107.65
Previous Monthly High	109.8
Previous Monthly Low	108.43
Daily Fibonacci 38.2%	110.05
Daily Fibonacci 61.8%	109.97
Daily Pivot Point S1	109.93
Daily Pivot Point S2	109.72
Daily Pivot Point S3	109.59
Daily Pivot Point R1	110.27
Daily Pivot Point R2	110.39
Daily Pivot Point R3	110.6

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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