USD/JPY remains capped below Wednesday’s 3-1/2 week tops

 Upbeat Japanese retail sales data exerts some initial downward pressure.
   •  Cautious mood offsets a modest USD uptick and caps any meaningful up-move.

The USD/JPY pair quickly reversed an early dip to mid-111.00s and has now moved within striking distance of 3-1/2 week tops touched in the previous session.

Today's better-than-expected domestic retail sales data provided a minor boost to the Japanese Yen and exerted some initial downward pressure. The downtick, however, remained cushioned and was being supported by a modest pickup in the US Dollar demand.

An upward revision of the US GDP print on Wednesday, now showing that economic growth during the second-quarter of 2018 stood at 4.2% annualized pace as compared to 4.1% estimated earlier, helped the pair to quickly rebound around 20-25 pips the Asian session lows. 

Meanwhile, bulls seemed lacking any strong conviction/non-committal amid the prevalent cautious mood around equity markets, which was seen underpinning the Japanese Yen's safe-haven appeal and eventually keeping a lid on any meaningful up-move for the major. 

It would now be interesting to see if the pair is able to build on overnight strong up-move or continues with its struggle to surpass the 111.80-85 immediate supply zone and make it back above the 112.00 handle. 

Market participants now look forward to the US economic docket, featuring the release of core PCE price index, personal income/spending data and the usual initial weekly jobless claims, in order to grab some short-term trading opportunities.

Technical levels to watch

Momentum beyond the 111.80-85 region could assist the pair to easily surpass the 1112.00 mark and retest monthly high resistance near the 112.15 level. On the flip side, weakness back below mid-111.00s, leading to a subsequent break below 111.25 horizontal support might now force the pair to head back towards retesting sub-111.00 level (110.95 support area).

                 Start Trading with Free $30    : CLAIM NOW $30 

               VERIFY YOUR ACCOUNT AND GET YOUR $30 INSTANTLY ,MAKE MONEY WITHDRAW !!

               IT IS POSSIBLE TO SHIFT FROM $30  TO  $1,000,000  TRY  TODAY

IF  YOU  FACE  ANY  PROBLEM  TO  GET  THIS  OFFER  PLEASE CONTACT US FOR

               SUPPORT ,  CLICK  SMS  BAR  ABOVE  THEN  TALK  TO  US