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14 Jan 2015
USD/JPY extends losses after weak retail sales data
The USD/JPY pair declined further after the December advance retail sales data showed anemic consumption in the world’s largest economy.
The pair now trades 1.35% lower at 116.34 levels, The Yen extended after the official data showed retails ales fell 0.9%, beating the expected fall of 0.1%, and down from the November’s 0.7% rise. The retail sales-ex auto data also contracted 1%, against the expectation of 0.0%.
Moreover, the weak data is likely to trigger expectations of delay in the interest rate hike in the US. Consequently, the 10-yr Treasury yield declined to 1.807%, while the 30-yr yield hit a record low of 2.458%. The fall in yields pushed the Yen higher against the US dollar.
USD/JPY Technical Levels
A strong support is seen at 115.55 (Dec. 16th low), under which the pair could test 114.61 (100-DMA) levels. Meanwhile, resistance is seen at 116.53 and 117.07 (hourly 50-SMA) levels.
The pair now trades 1.35% lower at 116.34 levels, The Yen extended after the official data showed retails ales fell 0.9%, beating the expected fall of 0.1%, and down from the November’s 0.7% rise. The retail sales-ex auto data also contracted 1%, against the expectation of 0.0%.
Moreover, the weak data is likely to trigger expectations of delay in the interest rate hike in the US. Consequently, the 10-yr Treasury yield declined to 1.807%, while the 30-yr yield hit a record low of 2.458%. The fall in yields pushed the Yen higher against the US dollar.
USD/JPY Technical Levels
A strong support is seen at 115.55 (Dec. 16th low), under which the pair could test 114.61 (100-DMA) levels. Meanwhile, resistance is seen at 116.53 and 117.07 (hourly 50-SMA) levels.