USD/JPY retreats toward 104.00 as US stocks ease from highs

The yen gained momentum in the market as US stocks moved off daily highs. The Dow Jones dropped a hundred points from the top; the index was still up for the day (+0.40%). 

USD/JPY climbed to 104.46 after the release of US data but during the last two hours, the technical tone turned bearish in the short-term with the price falling toward 104.00 and below the 20-hour moving average. 

In the US, data showed that retail sales rose 0.6% in September, matching consensus estimates, representing a rebound after the 0.2% decline in August. Wholesale prices (PPI) came in at 0.7% (annual rate) in September, surpassing expectations of a 0.6% rise. Consumer confidence dropped from 91.2 to 87.1, market consensus pointed to a rise to 91.9. 

Technical levels to watch

The pair is trading at 104.03, after falling momentarily below 104.00, up 35 pips for the day. To the downside support levels might be seen at 103.70 followed by 103.30 (Oct 13 low) and 103.15 (Oct 11 low). On the opposite direction, resistance might now be seen at 104.15 (Oct 6 high), 104.45 (daily high) and 105.00 (psychological).