USD/JPY continues being faced with downward pressure as 2017 comes to an end, last trading at 112.75, near day lows, with US Dollar weakness being the main driver.
Yen supported by strong macro data
Valeria Bednarik, notes: “US Treasury yields edged sharply lower on Wednesday, with the 10-year note threshold reaching an early low of 2.41%, from previous 2.47%, to finally stabilize in the US session around 2.43%. Japan’s Industrial Production rose in November, fueled by strong growth in exports, although matching the previous and expected 0.5% monthly basis. Retail trade in the same month was up 1.9% from a previous flat reading, while large retailer’s sales came in at 1.4% from the previous -0.7% and the expected -0.6%.”
USD/JPY technicals hint further downside
Valeria Bednarik, notes: “Technically, the risk has leaned toward the downside for the short term, as in the 4 hours chart, the pair remains below its 100 SMA, having met selling interest around it during the US session, while technical indicators remain within bearish territory, slowly turning south. The immediate support comes now at 112.60, with a break below the level opening doors for an extension sub-112.00.”