The USDJPY posted modest gains on upbeat US retail sales data, which beat analysts’ estimates. The market consensus was for a 0.1% growth in both the retail sales and the core component of this number, but the data showed that retail sales grew by 0.4% in the month under review. This was a 0.3% upward deviation, which was just enough to see the greenback gain 30 pips against the Japanese Yen. The Core Retail Sales also came in at 0.4%. The report also saw the downward revision of the previous numbers from 0.5% to 0.4%.
USDJPY Technical Play In Response to Upbeat US Retail Sales
The USDJPY’s upside move as a result of the retail sales report has stalled at the R2 pivot price of 108.24. The pair is still testing that resistance area and is vulnerable to further shocks as FOMC member Charles Evans takes the stage in a CNBC interview very shortly.
The daily pivots continue to remain the price targets for the USDJPY. If price is able to break above the 108.24 R2 pivot, the door opens for attainment of the R3 pivot price of 108.38 and beyond. If the R2 pivot holds firm, we could see a downward reversal to the 108.07 R1 pivot. All price targets listed are intraday targets.
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