USD/JPY Consolidates Below 109 ahead of US Data
pair is seen consolidating the downside below 109 levels, with the
bears taking a breather heading closer towards the US macro dataflow.
USD/JPY regains 5-DMA at 108.79
Having fond solid support ahead of 108.50 levels, the dollar-yen pair attempts a minor pullback towards 109 handle in the European session, before supply capped the recovery just shy of the last. At the moment, the USD/JPY pair drops -0.17% to 108.83, trying hard to take-out stiff resistance near 108.90 region.
The major now seems to await fresh incentives from the upcoming US economic releases, with the US retail sales figures expected to remain the main focus, which may throw fresh light on the US economic prospects. Markets expect a robust ng 0.8% increase in retail spending - the strongest hike since July. The retail trade data will be followed by PPI indices, also for April, and an improvement is expected here as well.
USD/JPY Technical levels to watch
In terms of technicals, the immediate resistance is located at 109 (round number). A break above the last, the major could test 109.50 (psychological levels). While to the downside, the immediate support is seen at 108.65/50 (1h 100-SMA) and below that at 108.00 (round number).