USD/JPY extends slide toward 113 despite upbeat US retail sales data
- Retail sales in the U.S. rose more than expected in October.
- US Dollar Index stays in range above the 97 handle.
- Risk-off mood helps JPY find demand on Thursday.
The greenback failed to take advantage of the upbeat retail sales figures and the USD/JPY pair extended its slide to a fresh weekly low at 113.09. As of writing, the pair was trading at 113.15, losing 0.4% on a daily basis.
The data released by the U.S. Census Bureau on Thursday showed that retail and food services sales for October increased by 0.8% to $511.5 billion following September's 0.1% decline. Commenting on the data, "American consumers have affirmed they are still in charge. The rebound in retail sales in October leading into the holiday shopping season is good news for the economy, the Fed and the dollar," FXStreet Senior Analyst Joseph Trevisani said. The US Dollar Index, however, didn't react to the data and stayed in its daily range above the 96 mark. At the moment, the index is up 0.2% on the day at 97.20.
On the other hand, the ongoing political drama in the UK and the uncertainty surrounding the Parliament's support for Brexit weighed on the market sentiment on Thursday and allowed the JPY to find demand as a safe-haven. If Wall Street struggles to push higher in the remainder of the day, we could see the pair stay under a bearish pressure.
Technical levels to consider
The initial support for the pair aligns at 113.00/112.95 (20-DMA/50-DMA) ahead of 112.55 (Nov. 1 low) and 112.00 (100-DMA). On the upside, resistances could be seen at 113.65 (daily high), 114.20 (Nov. 12 high) and 115.00 (psychological level).