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29 Jul 2015
USD/JPY: Yen rises to highs near 123.40, upbeat retail sales support
FXStreet (Mumbai) - USD/JPY reversed previous gains and fell into the negative territory in the mid-Asian session, as the Japanese currency enjoys stronger than expected Japanese retail sales numbers while the greenback edged lower on profit-taking after the recent strength.
USD/JPY drops from 123.58
Currently, the USD/JPY pair trades -0.16% lower at fresh session lows of 123.36, unable to hold on to 123.50 levels. The US dollar once again lost ground to the Japanese yen, after a brief reversal seen on Tuesday as JPY bulls cheered the upbeat data from Japan, boosting the overall sentiment.
Retail sales in the world's third-largest economy rose an annual 0.9% in June, beating expectations for a 0.5% rise but still slowing sharply from a 3% spike in May. The report comes after the government recently downgraded its forecasts for consumer prices.
Moreover, the greenback fell across the board in Asia on a bout of profit-taking after the US currency stood resilient completely ignoring disappointing US consumer confidence data as the upcoming Federal Open Market Committee statement (FOMC) shifted more attention back to the greenback.
The market is likely to stay in waiting mode as the main focus remains on the FOMC meeting, which concludes on Wednesday. While pending home sales data from the US will be eyed until the FOMC decision.
USD/JPY Technical Levels
To the upside, the next resistance is located 123. 85 (July 26 High) levels and above which it could extend gains 124.12 (July 24 High) levels. To the downside immediate support might be located at 123.01 (July 27 Low) below that at 122.57 (July 3 Low) levels.
USD/JPY drops from 123.58
Currently, the USD/JPY pair trades -0.16% lower at fresh session lows of 123.36, unable to hold on to 123.50 levels. The US dollar once again lost ground to the Japanese yen, after a brief reversal seen on Tuesday as JPY bulls cheered the upbeat data from Japan, boosting the overall sentiment.
Retail sales in the world's third-largest economy rose an annual 0.9% in June, beating expectations for a 0.5% rise but still slowing sharply from a 3% spike in May. The report comes after the government recently downgraded its forecasts for consumer prices.
Moreover, the greenback fell across the board in Asia on a bout of profit-taking after the US currency stood resilient completely ignoring disappointing US consumer confidence data as the upcoming Federal Open Market Committee statement (FOMC) shifted more attention back to the greenback.
The market is likely to stay in waiting mode as the main focus remains on the FOMC meeting, which concludes on Wednesday. While pending home sales data from the US will be eyed until the FOMC decision.
USD/JPY Technical Levels
To the upside, the next resistance is located 123. 85 (July 26 High) levels and above which it could extend gains 124.12 (July 24 High) levels. To the downside immediate support might be located at 123.01 (July 27 Low) below that at 122.57 (July 3 Low) levels.