USD/JPY revisits highs after US retail sales

FXStreet (Córdoba) - USD/JPY reacted positively and made a marginal new high following the latest string of US data which showed retail sales came in stronger than expected in July, while initial jobless claims disappointed.

Retail sales leave door open for September liftoff

US retail sales rebounded in July, rising 0.6% from a 0.3% fall printed in June and beating expectations of a 0.5% increase. Excluding autos however, sales grew 0.4%, slightly below the 0.5% of forecast.

Separated data showed initial jobless claims rose by 5,000 to 274,000 in the seven days ended August 8, more than the 270,000 expected. Import prices fell by 0.9% in July, led by lower fuel prices.

USD/JPY stretched to a high of 124.59 following data, but lacked momentum to extend gains and remained little changed in the aftermath. At time of writing, the pair is trading at 124.52, up 0.26% on the day, from 124.43 pre-data.

USD/JPY levels to watch

In terms of technical levels, resistances could be found at 124.59 (Aug 13 high), 125.27 (Aug 12 high) and 125.66 (Jun 8 high). On the other hand, immediate supports are seen at 123.78 (Aug 12 low), 123.60 (50-day SMA) and 123.32 (Jul 29 low).

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