- US Retail Sales rise more than expected in October.
- Quiet session on financial markets on Wednesday.
- USDJPY rises slightly, moving between 139.00 and 140.00.
The USDJPY it moves around 139.40, modestly higher on the day, after the release of US economic data, in a relatively quiet session. The pair continues to stabilize after the strong movements of the past week.
Mixed dollar behind the data
US data is mixed to positive. Retail Sales in October rose 1.3%, the best reading in eight months. Industrial production fell 0.1%, against expectations for a 0.2 increase; the figures for September were revised downwards, from 0.4% to 0.1%.
The numbers boosted the dollar, but only modestly. The DXY is still in negative territory but above 106.00. While the 2-year US bond yield is holding steady at 4.36%, the 10-year yield is trading at 3.73%, the lowest level since October 22. USDJPY rallied as high as 140.00 after retail sales, but then eased as low as 139.03.
In Japan, machinery orders unexpectedly fell by 4.6% in September. “Brown Brother Harriman analysts say this comes after weaker-than-expected third-quarter GDP data and of course bodes poorly for growth going forward, so it’s not It is hardly surprising that Japan’s policymakers remain wary of withdrawing stimulus too soon.
bearish but consolidating
USDJPY is moving sideways after being able to recapture the 138.50 area. A consolidation below would increase bearish pressure. To the upside, immediate resistance is around 140.00 and then the 140.60 area. A consolidation above would open the door for a test of 141.00 and probably a bigger gain.
The ongoing consolidation follows a sharp drop last week that changed the short-term bias from bullish to bearish.
technical levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
