Fxstreet.com (Barcelona) - USD/JPY has fallen around 90 pips from 99.80 to 99.16, fresh two-week low, after the US March retail sales data. Previously, the pair has tested the 100.00 level again. Currently, USD/JPY has losing 0.85% from the opening price at 100.34 to be traded around 99.40/50.
Producer price index has fallen 1.2% between February and march, worst than 0.0% expected by market, as well as a 3.5% decreases on PPI year over year with markets yearly expectations of 2.2% decreases. Excluding Food and energy, PPI has posted 0.0% no monthly basis and it has risen 3.8% YoY in March.
Retail sales has collapsed 1.1%, between February an March, instead 0.3% increases expected by market. Excluding autos, retails sales has fallen 0.9% in March, worst than 0.0% expected by experts.
Valeria Bednarik, FXstreet.com collaborator,says: Pair broke an ascendant trend line, and after completing the pullback, fell to a two-week-low at 99.16. CCI seems a bit exhausted in the hourly chart, so an upside correction could send the pair back to the 99.65 zone. Once there, break or rebound will define the rest of the day bias. 20 SMA is cutting to the downside the 200 EMA putting extra pressure in the pair. However, downside still seems limited in the term, as long as the pair remains above the 98.00 zone
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