USD/JPY Down on Bad US Retail Sales Data

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USD/JPY Down on Bad US Retail Sales Data

10:00 AM (EST) Update

USD/JPY Daily: Breaks below  Ichimoku Cloud’s  remaining inside an extended Triangle

Forex Trading Idea: Short term small range trades with resistance at 120.27 and support at 119.

Fundamental Movers: US retail sales were flat in April, while excluding autos sales rose by 0.1%. Consensus was for 0.2% and 0.5% increases for the headline and the core respectively. Separated data showed import prices dropped by 0.3% in the same month, missing expectations of a 0.3% rise.

Technical Analysis: The dollar – Yen pair continues to range inside a triangle with substantially lower volatility as the pair approaches the end of the triangle, which could be a sign of a massive breakout. With few economic data out of Japan, the pair’s movements is mostly driven by Ms. USA which was down today on bad economic data.

So for a longer term trading idea you gotta wait for a breakout out of the triangle and the pivot zone.

Where to set your stops and limits:

Support Levels Turning Point Resistance Levels
118.50 119.30 120.27
119 118.75 120.77