USD/JPY Continues Winning Streak After Soft Retail Sales Data

FXOpen

The US Dollar (USD) extended upside movement against the Japanese Yen (JPY) on Monday, increasing the price of USDJPY to more than 123.00 following some key economic release on Friday. The technical bias remains bullish because of a Higher High in the ongoing wave.

Technical Analysis

The USD/JPY pair closed last Friday at 122.58, having retraced half of the gains achieved in the NFP Friday, on speculation the Bank of Japan may refrain from extending the monetary stimulus program, at least for the rest of the current fiscal year. Also, soft US macroeconomic data has prevented the greenback from running these last few days, although  the confirmation of a technical top remains for now, out of the question.

USD/JPY Continues Winning Streak After Soft Retail Sales Data

Technically, the daily chart for the USD/JPY shows that the price is now below the 23.6% retracement of its latest advance, whilst the technical indicators have retraced from overbought level and hold far above their mid-lines, implying limited bearish potential at the time being. In the same chart, the 100 and 200 SMA’s converge with the 61.8% retracement of the same rally at 121.50, becoming a critical support during the upcoming days. In the 4 hours chart, the technical indicators diverge from each other in negative territory, but the price remains well above its moving averages. The 38.2% retracement of the mentioned rally stands at 122.30 the immediate support and the level to break to confirm further declines for this Monday.

US Retail Sales

U.S. retail sales rose less than expected in October amid a surprise decline in automobile purchases, suggesting a slowdown in consumer spending that could temper expectations of a strong pickup in fourth-quarter economic growth.

The Commerce Department said on Friday retail sales edged up 0.1 percent last month after being unchanged in September. Economists had forecast retail sales increasing 0.3 percent in October after a previously reported 0.1 percent increase in September.

Trade Idea

Considering the overall technical and fundamental outlook, selling the pair around 123.50 level could be a good strategy if we get a valid bearish reversal candle on four-hour timeframe.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Stay ahead of the market!

Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.

forex

Forex Trading with FXOpen

Forex Trading with FXOpen

Experience ECN technology for deep liquidity and light-speed trade execution

  • Access over 50 markets
  • Trade with spreads from 0.0 pips
  • Take advantage of commissions from $1.50/lot
Learn more

Latest articles

Gold Price Plunges After Climbing to $3,500 for the First Time
Commodities

Gold Price Plunges After Climbing to $3,500 for the First Time

As the XAU/USD chart shows:
→ Yesterday, the spot gold price stopped just a few cents short of the key psychological level of $3,500 (and even exceeded it on the futures market);
→ But this morning, an ounce is trading

Alphabet (GOOGL) Shares Hover Near Psychological Level Ahead of Earnings Report
Shares

Alphabet (GOOGL) Shares Hover Near Psychological Level Ahead of Earnings Report

On 31 March, we noted that bearish sentiment could push Alphabet’s (GOOGL) share price towards the psychological level of $150. As the current price chart suggests, GOOGL is now trading close to that very level.

Moreover, the price is

1-Minute Scalping Trading Strategies With Examples
Trader’s Tools

Four 1-Minute Strategies for Scalpers

Scalping is all about speed, precision, and quick decision-making. For traders who thrive in fast-paced environments, 1-minute strategies offer a way to engage with the market. But with such a short timeframe, trading requires a clear plan and sharp execution.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.