14 Jul 2015
USD/JPY bounces back after retail sales punch
FXStreet (Córdoba) - USD/JPY has managed to recover from lows and cut most of its intraday losses as the dollar bounced back following a negative reading of US retail sales.
Disappointing retail sales data sent the greenback to a low of 122.90 against the yen as investors assess expectations of a Fed rate hike later this year while attention turns to Fed’s Yellen testimony tomorrow. However, USD/JPY managed to bounce and it was last at 123.35, little changed on the day.
US data weigh on the dollar
On the data front, US retail sales fell 0.3% in June and import prices dropped 0.1% in the same period. Meanwhile, business inventories rose 0.3% in May, in line with expectations. Goldman Sachs lowered its Q2 US GDP tracking forecast to 3.0% from 3.2% after soft retail sales data.
USD/JPY technical levels
In terms of technical levels, next resistances are seen at 123.72 (Jul 14 high), 124.00 (psychological level) and 124.36 (Jun 24 high). On the other hand, supports could be found at 122.46 (50-day SMA), 122.26 (Jul 13 low) and 122.00 (psychological level).
Disappointing retail sales data sent the greenback to a low of 122.90 against the yen as investors assess expectations of a Fed rate hike later this year while attention turns to Fed’s Yellen testimony tomorrow. However, USD/JPY managed to bounce and it was last at 123.35, little changed on the day.
US data weigh on the dollar
On the data front, US retail sales fell 0.3% in June and import prices dropped 0.1% in the same period. Meanwhile, business inventories rose 0.3% in May, in line with expectations. Goldman Sachs lowered its Q2 US GDP tracking forecast to 3.0% from 3.2% after soft retail sales data.
USD/JPY technical levels
In terms of technical levels, next resistances are seen at 123.72 (Jul 14 high), 124.00 (psychological level) and 124.36 (Jun 24 high). On the other hand, supports could be found at 122.46 (50-day SMA), 122.26 (Jul 13 low) and 122.00 (psychological level).