USD/JPY outlook: May fall further if US Retail Sales miss in June

Slobodan Drvenica Windsor Brokers

USD/JPY

USDJPY remains in extended consolidation of last week’s sharp fall, sparked by US inflation data and intervention by Japanese authorities.

Near-term action is holding above 55DMA (157.55) which repeatedly contained dips and marks solid support for now.

Traders also take a breather, awaiting fresh signals from US retail sales, due today, which may further deflate dollar if June numbers miss forecasts, as Further intervention could be expected in such scenario.

Weaker daily studies add to potential bearish outlook, with firm break of 55DMA pivot to expose targets at 154.98 (100DMA) and 154.54 (June 4 higher low) and risk further losses on violation of the latter.

Converged 5/30DMA’s mark initial resistance (159.03), guarding upper pivot at 160.05 (converged 10/20DMA’s.

Res: 159.53; 160.05; 160.25; 161.80.
Sup: 157.55; 156.83; 155.71; 154.98.

Interested in USD/JPY technicals? Check out the key levels

1. R3 159.9
2. R2 159.16
3. R1 158.63
PP 157.89
1. S1 157.36
2. S2 156.62
3. S3 156.09

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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