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USD/JPY: keeps range around 119.50, US retail sales eyed

FXStreet (Mumbai) - The US dollar consolidates to the downside versus the Japanese currency in the last hours, keeping USD/JPY in familiar range around 119.50 levels.

US data in focus

Currently, the USD/JPY pair trades -0.16% lower at 119.52, unable to extend beyond 119.60 levels in recent dealings. The JPY bulls are now bidding up for the upside as the USD/JPY pair is expected to drop further on the release of the US retail sales numbers. Markets are expecting a flat reading at +0.2% m/m, while the core figure is expected to drop -0.1% in Sept.

While the latest news from the Japanese PM Abe’s office as well as downward revision to the country’s economic outlook, appears to have little impact on the yen.

Looking ahead, the US retail sales and the factory gate prices data are likely to garner a lot of attention after data-quiet first two days of this week.

USD/JPY Technical levels to consider

To the upside, the next resistance is located at 119.83 (hourly 50-SMA) beyond which 120.07 (20-DMA) could be tested. Above the last, the pair could climb further towards 120.34/41 (daily R2 & 50-DMA). To the downside immediate support might be located at 119.50 (daily S1), below which 119.22-21 (Sept 29 & 24 Lows) could be exposed. A breach of the last, the pair could drop to 118.83 (Sept 8 Low) levels.

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