USD/JPY nose-dives to 113.20, 3-day lows

The greenback has now intensified the daily correction lower, dragging USD/JPY to test the area of multi-day lows around 113.20.

USD/JPY offered post-US data

The pair met a wave of selling interest after US Retail Sales and inflation figures measured by the CPI failed to meet market expectations for the month of April, hurting the sentiment around the buck and driving US yields lower.

In fact, yields of the US 10-year reference keeps losing ground so far, currently testing weekly lows near the 2.33% handle, following the broader sentiment in the market.

Further US data saw upbeat figures of the advanced Reuters/Michigan index for the month of May, although it seems far from sufficient to curb the current bearish note around USD.

In addition, Chicago Fed C.Evans sounded quite neutral at his speech today, noting he could be comfortable with one more rate hike if inflation outlook stays uncertain. He also added that fiscal policy poses upside risks to domestic economy.

USD/JPY levels to consider

As of writing the pair is retreating 0.53% at 113.27 facing the next down barrier at 113.02 (100-day sma) followed by 112.91 (23.6% Fibo of 108.11-114.39) and then 111.99 (38.2% Fibo of 108.11-114.39). On the flip side, a breakout of 113.95 (high May 12) would open the door to 114.39 (high May 11) and finally 115.51 (high Mar.10).