FXStreet (Edinburgh) - The greenback is now retreating further vs. the Japanese currency, sending USD/JPY to the 116.70/65 area. USD/JPY weaker on poor US results The pair’s downside has gained further traction after US Retail Sales have disappointed markets during December. In fact, headline sales have contracted 0.1% inter-month, while sales excluding the Auto sector have also dropped 0.1% on a monthly basis. Further releases saw Producer Prices matching consensus, contracting 1.0% on a year to December. Producer Prices excluding Food and Energy costs have rise 0.3% over the last twelve months. Next of relevance will be the speech by Fed’s J.Bullard, followed by Industrial Production, Capacity Utilization and the Reuters/Michigan index. USD/JPY levels to watch The pair is now retreating 1.07% at 116.80 facing the next support at 116.46 (low Aug.24) ahead of 115.82 (low Jan.16 2015) and finally 115.56 (low Dec.15 2014). On the other hand, a breakout of 118.32 (38.2% Fibo of 123.60-116.68) would target 119.34 (20-day sma) en route to 120.67 (high Dec.30). For more information, read our latest forex news.