- US Dollar traded lower and declined against the Japanese Yen after the US retail sales report.
- The USDJPY pair traded below the 121.00 area and created a new intraday low of 120.85.
- US Retail Sales released by the US Census Bureau posted an increase of 0.2% in November 2015, compared with the preceding month.
- Moreover, the Reuters/Michigan Consumer Sentiment Index released by the Reuters/University of Michigan came in at 91.8 for December 2015.
The USDJPY pair dived during the NY session and traded lower below the 121.00 support area. There is a bearish trend line formed on the hourly chart, which acted as a hurdle the downside move. The pair may recover in the near term, but it may find resistance near the 23.6% Fib retracement level of the last drop from the 122.25 high to 120.85 low.
On the downside, the last low of 120.85 may act as a support. A break below it could take the pair towards the 120.60 level.
The hourly RSI is around the oversold readings, which may ignite a short-term correction.
US Retail Sales
The US Retail Sales figure, which represents the measure of the total receipts of retail stores was released by the US Census Bureau. The market was expecting a rise of 0.3% in November 2015, compared with the preceding month. The outcome was on the lower side, as the sales rose 0.2%.
The report stated that “advance estimates of U.S. retail and food services sales for November, adjusted for seasonal variation and holiday and trading-day differences, but not for price changes, were $448.1 billion, an increase of 0.2 percent (±0.5%)* from the previous month“.
Overall, the reports were not impressive, which weighed on the US dollar. There is a chance of a recovery, but sellers may appear on the upside.