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USDJPY Looks Set For More Losses

Key Points

  • US Dollar struggled a lot against the Japanese Yen today, and traded lower.
  • There were a couple of important support trend lines on the hourly chart, which were cleared by sellers.
  • US Retail Sales released by the US Census Bureau posted a decline of 0.1% in December 2015, compared with the preceding month.
  • Moreover, the US Retail Sales ex Autos came in -0.1% at in December 2015, compared with the preceding month.

Technical Analysis

The USDJPY pair struggled today, and failed to move higher. The pair broke a couple of important support trend lines on the hourly chart, which ignited a downside move. The pair also settled below the 100, 200 and 50 hourly simple moving average, which is another bearish sign.

USDJPY

If the USDJPY pair corrects higher from the current levels, then the broken trend lines may act as a resistance along with the 38.2% Fib retracement level of the last drop from the 118.30 high to 117.07.

On the downside, if sellers remain in control a move towards 116.60-80 is possible.

US Retail Sales

Today, the US Sales, which measures the total receipts of retail stores was released by the US Census Bureau. The market was expecting no change in the sales in December 2015, compared with the preceding month. However, the outcome was disappointing, as the US Retail Sales registered a decline of 0.1%.

Moreover, the US Retail Sales ex Autos came in -0.1% at in December 2015, compared with the preceding month. Overall, the report misses the mark, and ma ignite more selling pressure on the greenback moving ahead.

The USDJPY pair may recover in the near term, but the upside may stall near the broken trend lines and resistance area.

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