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USD/JPY breaks below 117.00 on US data

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 15, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    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).
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